Bitcoin speculation fervor cools down, traders await Trump's next move.

Since Donald Trump won the US election, the speculative frenzy surrounding Bitcoin in the spot market and derivatives market has eased. On Friday, after Federal Reserve Chairman Jerome Powell stated that there was no rush to cut interest rates, Bitcoin, the largest digital asset, briefly fell below $87,000 per coin, dropping 3.79% intraday, down about $6,500 from the record high set on Wednesday. In the derivatives field, K33 Research indicates that the premium of Bitcoin futures listed on the Chicago Mercantile Exchange compared to the spot market price has decreased. US institutional investors use these contracts to hold positions in the underlying cryptocurrency. Data from Amberdata shows a significant increase in open put option contracts with a strike price of $80,000 within 24 hours. Vetle Lunde, head of K33 Research, stated, "The market seems to be cooling off." He added that the narrowing of the futures premium "might be a subtle hint of easing risk conditions." Trump's pledges Since the US election on November 5, Bitcoin has risen by about 30% in response to President-elect Trump's support for 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 is left in this rally. Trump has promised to establish a friendly regulatory framework for cryptocurrencies, create a strategic Bitcoin reserve, and make the US the global center of the industry. While Trump has been skeptical of cryptocurrencies in the past, he changed his stance after digital asset companies invested heavily in promoting his interests during the election campaign. However, the feasibility and timeline of his promises still remain in question. After election day, US Bitcoin exchange-traded funds (ETFs) saw a net inflow of $4.7 billion. According to Bloomberg data, the 12 funds were issued by firms including BlackRock and Fidelity Investments, with a total assets under management of around $94 billion. Expected volatility James Davies, CEO of the on-chain futures and options trading platform Crypto Valley Exchange, stated, "This is all purely speculative trading now." "While we wait for the US to announce its policies, we expect a period of significant volatility, with a lack of clear signals." Davies noted that $90,000 is a key level to watch, to see if it becomes a "resistance level, or if we have already surpassed it by far." Data from the Bitcoin exchange Deribit shows that one of the most concentrated areas for bullish Bitcoin options bets is contracts at $100,000. Apart from Bitcoin, the second-ranked Ether and the popular Dogecoin and other smaller tokens saw mixed movements on Friday, in line with a decrease in risk appetite as traders reduced bets on a Fed rate cut following Powell's comments.