Bitcoin CME Futures Spread Narrows to $495, Ending ‘Trump Bump’
Market sentiment has shifted following the November 5 Presidential elections, as bullish indicators related to CME bitcoin futures show weakening confidence. Key points include:
- The spread between next-month and front-month BTC futures narrowed to $495, down from a peak of $1,705 on December 17.
- This decline indicates that traders are adjusting their price expectations post-election.
- The market has moved past assumptions that a pro-crypto president would benefit the industry, focusing instead on macroeconomic factors.
- Since early February, both BTC and Nasdaq have decreased by 20% and 8%, respectively, due to geopolitical uncertainty and inflation concerns.
- Disappointment arose over Trump's Strategic Bitcoin Reserve plan, which did not include new purchases of BTC, contributing to a price drop.
- Despite the narrowing spread, the futures market remains in contango, indicating longer-term contracts are priced higher than shorter ones.
- Current trends suggest that recent price movements are driven by unlevered spot longs rather than widespread market issues.
