with strike prices at $110,000 and $120,000, according to data from Deribit. As Davies commented, \u201cIt\u2019s all pure speculative trading right now, expect lots of volatility and a lack of clear signals for a while whilst we wait for policy announcements in the U.S.\u201d<\/span><\/p>\nAs the market approaches the expiry of November options, all eyes will be on whether the $90,000 price point will serve as a resistance level or if Bitcoin can surpass it once again.<\/span><\/p>\nFeatured image from DALL-E, chart from TradingView.com\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"The massive Bitcoin (BTC) rally following Donald Trump\u2019s victory in the US presidential election is beginning to show signs of slowing down, particularly in the derivatives market, as evidenced by the leading digital asset’s retreat below the $90,000 mark on Thursday.\u00a0 Bitcoin Experiences Significant Liquidation Activity According to Bloomberg data, the premium for CME-listed Bitcoin futures contracts\u2014commonly used by institutional investors to speculate on price movements\u2014has decreased, indicating a potential shift in market sentiment. K33 Research notes that the basis, or the difference between the futures price and the spot price, has dropped to around 10% after previously hovering between 13% and 16% since the election.\u00a0 Related Reading: New Era For Crypto Regulation? SEC Chair Gensler Suggests He May Step Down Vetle Lunde, head of research at K33, remarked, \u201cMarkets seem to be cooling down… that might have been a subtle hint of moderating risk profiles.\u201d This shift suggests that investors may be reassessing their strategies in light of the recent price volatility. Currently, Bitcoin is trading at $87,970, down from its all-time high of $93,462 reached just a day ago. Since Trump\u2019s election victory, the cryptocurrency has seen an increase of over 30%.\u00a0 However, this rally has been accompanied by significant liquidation of leveraged bullish positions. In the past 24 hours, liquidations of long positions\u2014those betting on price increases\u2014totaled $447 million, compared to $207 million for bearish bets.\u00a0 Renewed Trader Interest Profit-taking is also contributing to the recent downturn, particularly as Bitcoin approached the $90,000 mark, which has historically been a significant level for open interest in call options.\u00a0 James Davies, CEO of Crypto Valley Exchange, noted, \u201cCrazy speculative days in the market, big profit taking in the last few hours… $90k is a massive level in the call options open interest.\u201d The rally has primarily been fueled by fresh demand in the spot market, evidenced by substantial inflows into exchange-traded funds (ETFs) backed by Bitcoin and relatively moderate leverage among traders.\u00a0 Interestingly, the funding rate for Bitcoin perpetual futures on offshore exchanges rose after falling earlier in the week, indicating renewed interest among traders after the so-called “Trump trade” catalyst. Related Reading: Solana \u2018God Candle Is Close\u2019 As It Breaks From Crucial Resistance \u2013 Top Analyst Options traders are increasingly optimistic, with growing interest in calls with strike prices at $110,000 and $120,000, according to data from Deribit. As Davies commented, \u201cIt\u2019s all pure speculative trading right now, expect lots of volatility and a lack of clear signals for a while whilst we wait for policy announcements in the U.S.\u201d As the market approaches the expiry of November options, all eyes will be on whether the $90,000 price point will serve as a resistance level or if Bitcoin can surpass it once again. Featured image from DALL-E, chart from TradingView.com\u00a0<\/p>\n","protected":false},"author":589,"featured_media":628165,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,485,656,679,755,768,1119,1122,1144,8390,78790,6664,14690],"class_list":["post-653213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-chart","tag-bitcoin-news","tag-bitcoin-price","tag-bitcoin-technical-analysis","tag-bitcoin-trading","tag-btc","tag-btc-price","tag-btcusd","tag-btcusd-price","tag-btcusdt","tag-crypto","tag-crypto-news"],"acf":[],"yoast_head":"\n
Record-Breaking Bitcoin Rally Post-Trump Victory Begins To Cool In Derivatives Trading, What's Next?<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n