Bitcoin Surpasses $90,000 All-Time High with Over $2.8 Billion Wagered
Bitcoin has recently crossed a new high mark nearer to 81000 dollars, fueling up prices in future premiums, and this indicates the investors’ confidence in the growth factor of the world`s biggest cryptocurrency. So basically this positive behavior of the market has arisen after the recent election results of the United States of America, which brings pro-crypto candidates in line. Additionally, Deribit, which is one of the major crypto derivative platforms, dominates the offshore options market, while the open interest in Bitcoin has surpassed the 90000 dollar mark and has recently increased by 2.8 billion dollars.
It is seen that the options market is now leaning towards continued momentum, while the call option`s price is now higher than the puts and growing its open interests in out-of-the-money calls, as indicated by the head of K33 Research, Mr. Vetle Lunde, during an interview that is hosted by the CNBC. A call option allows buyers the right to purchase a primary form of the asset at a suitable price with timeframe fluctuations, basically having a bet on a price when it increases, and a similarly put option is a wager that the price of the asset will show a decline.
Also, the CME derivative exchange, which offers Bitcoin futures contracts, is a primary tool to estimate the future prices of Bitcoin by the United States institutions. Additionally, Velde has also stated to CNBC that CME premiums for cryptos such as Ethereum and Bitcoin have averaged 14.5 per cent and 14 per cent during Friday`s session, respectively, while before the election result, premium averages remained 7 per cent and mostly below the range of 10 per cent for the continuous six months. This uptrend shows the current bullish intention of the market, as the yields have largely been steady in double digits since the election started to come out.
Mr Velde has also stated that as the leverages are on the rise, we can now expect to witness the first sharpest rise in the yields within the derivatives of offshore; this shows that this move has been fuelled up by the risk takers expecting a future gain. So basically, Bitcoin’s initial convention is associated with a growth in open interests for an eternal swap, the contract that allows the traders to consider the future price direction without any of a fixed set of ending dates.
He noted that the liquidity of crypto often declines during the weekends, as the CME futures and ETFs remain closed, which leads to an embellished movement that might retrace when markets are about to reopen. Trump believes that he will make the United States a crypto capital, promising a national crypto reserve worth over 16 billion dollars in seized Bitcoin, and also stated that he will lower the rate of interest, which might boost the crypto valuation by showing the borrowing cost as cheap.
The Federal Reserve is an independent institute that manages the United States monetary policies with a set of benchmark rates. On Thursday, the Fed lowered its rate of interest by around 25 basis points. This decision came after the election result and undisputed decision regarding the rate cut by the Fed, while the crypto showed a rise this weekend. It is seen that by a margin of 30 per cent, Ethereum has exceeded the overall weekend growth of Bitcoin, and the Solana crypto witnessed a rise of 100 billion dollars on Sunday.
Additionally, it is seen that the Spot Bitcoin ETF now has a combined market cap of around 80 billion U.S. dollars, with an addition of 2.3 billion dollars in just three days. Fintech stocks, which are related to crypto, have increased after the pro-crypto candidates won the elections. It is seen that Coinbase, which is a major election producer, has witnessed its shares grow up to 48 per cent since January 2023 and is estimated to grow by more than 25 million dollars by the midterm of 2026. The legal officer of the Coinbase has noted that this is the finest victory for the crypto voters and the most pro-crypto congress yet. Also, Robinhood has experienced a gain of 27 per cent in the week.
Mr. Johann Kerbrat, who is the general manager of Robinhood Crypto, stated in a CNBC interview that the institution is now focusing on collaboration with the administration while saying that crypto is a complex matter yet evolving at a pace. He also noted that their focus is to make the policymakers understand the matter and create a positive environment for the customers.
