Bitcoin speculation enthusiasm cools! Traders anxiously await Trump to boost it personally

Since Trump won the U.S. presidential election, the speculative frenzy surrounding Bitcoin is gradually cooling in both the spot and derivatives markets. On Friday, the largest digital asset fell below $87,000, after Federal Reserve Chairman Jerome Powell stated that there was no need to rush into interest rate cuts, which left Bitcoin about $6,500 lower than the historical 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. Data from Amberdata shows that the open interest in put options with a strike price of $80,000 for Bitcoin surged significantly within 24 hours. "The market seems to be cooling down," said Vetle Lunde, head of research at K33, adding that the narrowing of futures premiums "may be a subtle indication of a moderation in risk appetite." Since the U.S. election on November 5, Bitcoin has risen about 30%, a response to the elected president Trump's supportive stance on cryptocurrencies. Digital assets are now seen as part of the so-called "Trump trade," with speculators wondering how much momentum this rebound has left. Trump promised to create a friendly regulatory framework for cryptocurrencies, establish a strategic Bitcoin reserve, and make the U.S. a global cryptocurrency hub. Trump was once a skeptic of cryptocurrencies, but he changed his stance after digital asset companies invested heavily during the campaign to promote their interests. Questions remain about the feasibility and timeline of his promises. After election day, net inflows into U.S. spot Bitcoin exchange-traded funds reached $4.7 billion. According to data compiled by foreign media, these 12 funds are from issuers like BlackRock and Fidelity Investments, with total assets now reaching approximately $94 billion. “All trading now is purely speculative trading,” said James Davies, CEO of the on-chain options and futures trading platform Crypto Valley Exchange. “A lot of volatility and a lack of clear signals are expected in the near future as we await policy announcements from the U.S.” Davies pointed out that $90,000 is a key indicator to watch closely to see if it can act as a "resistance level," or whether Bitcoin can strongly break above it. Data from Deribit exchange shows that one of the highest concentrations of bullish Bitcoin option bets is at a strike price of $100,000. Outside of Bitcoin, the second-largest token Ethereum and smaller tokens like Dogecoin, favored by retail investors, saw mixed movements on Friday, consistent with traders reducing bets on Fed rate cuts after Powell's comments, indicating a decline in market risk appetite.