Bitcoin speculation enthusiasm cools as traders await Trump's next move

According to Zhitong Finance APP, since Donald Trump won the U.S. election, the speculative frenzy surrounding Bitcoin has eased in both the spot and derivatives markets. On Friday, after Federal Reserve Chairman Jerome Powell stated that there was no need to rush into interest rate cuts, Bitcoin, the largest digital asset, briefly fell below $87,000 per coin, down 3.79% on the day, approximately $6,500 lower than the record high set on Wednesday. In the derivatives space, K33 Research noted that the premium of Bitcoin futures listed on the Chicago Mercantile Exchange relative to spot market prices has decreased. U.S. institutional investors use these contracts to hold positions in the underlying cryptocurrency. Data from Amberdata shows that the open interest (or outstanding contracts) for put options with a strike price of $80,000 surged within 24 hours. K33 research director Vetle Lunde stated, "The market seems to be cooling down." He added that the narrowing of futures premiums "may be a subtle indication of easing risk conditions." Trump's Commitment Since the U.S. election on November 5, Bitcoin has risen about 30% in response to President-elect Trump's supportive stance on cryptocurrencies. Digital assets are now seen as part of a series of so-called Trump trades, and speculators are eager to know how much momentum remains in this rally. Trump has promised to establish a friendly regulatory framework for cryptocurrencies, create a strategic Bitcoin reserve, and make the U.S. a global hub for the industry. Although Trump was previously skeptical of cryptocurrencies, he changed his strategy after digital asset companies invested heavily during the campaign to promote their interests. However, the feasibility and timeline for his commitments remain in question. After election day, U.S. Bitcoin spot exchange-traded funds (ETFs) saw a net inflow of $4.7 billion. According to Bloomberg's compiled data, the issuers of these 12 funds include BlackRock and Fidelity Investments, with a total asset size of approximately $94 billion. Expected Volatility James Davies, CEO of the on-chain futures and options trading platform Crypto Valley Exchange, stated, "Right now, it's purely speculative trading." "As we wait for the U.S. to announce policies, we expect a lot of volatility for a while, and there is a lack of clear signals." Davies pointed out that $90,000 is a key level to watch to see if it will become a "resistance level, or if we have already far exceeded it." Data from the Bitcoin exchange Deribit shows that one of the most concentrated places for bullish Bitcoin options bets is at the contract price of $100,000. Aside from Bitcoin, smaller tokens like Ether and the popular Dogecoin saw mixed movements on Friday, aligning with a decrease in risk appetite, as traders reduced bets on Fed interest rate cuts following Powell's comments