---
title: "Bitcoin speculative fervour cools, traders await next Trump steps"
description: "The speculative frenzy around Bitcoin since Donald Trump’s US election victory is moderating both in the spot and derivatives markets."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-15-bitcoin-speculative-fervour-cools-traders-await-next-trump-steps/"
published: "2024-11-15T05:43:29"
updated: "2024-11-15T05:43:31"
lang: "en-ZA"
word_count: 397
---

# Bitcoin speculative fervour cools, traders await next Trump steps

> The speculative frenzy around Bitcoin since Donald Trump’s US election victory is moderating both in the spot and derivatives markets.

By Bloomberg · Published 15 November 2024, 07:43 SAST · Updated 15 November 2024, 07:43 SAST

## Key points
- Bitcoin took a tumble below $87,000 after Jerome Powell reminded everyone that patience is a virtue when it comes to interest rates, leaving investors to wonder if Trump's crypto promises can keep the digital gold rush alive or if it's just another speculative mirage in a desert of uncertainty.
- Bitcoin fell below $87,000 after Fed Chair Powell indicated no rush for interest-rate cuts, leaving it $6,500 shy of its record high.
- K33 Research noted a decline in the premium for CME Bitcoin futures, with a surge in bearish options indicating a cooling market.
- Trump’s pro-crypto stance has fueled a 30% Bitcoin rally since the election, but the feasibility of his promises remains uncertain.
- Experts anticipate ongoing volatility in the market, with $90,000 as a critical resistance level and a concentration of bullish bets at $100,000.

## Content

The largest digital asset slid below $87,000 on Friday after Federal Reserve chair Jerome Powell said there was no need to hurry interest-rate cuts. That left the token about $6,500 below a record high achieved on Wednesday.

In the derivatives sector, K33 Research said the premium paid for CME-listed Bitcoin futures over the spot market price has declined. US-based institutional investors use the contracts to take positions on the original cryptocurrency. Figures from Amberdata indicate a 24-hour surge in open interest — or outstanding contracts — for bearish options with a strike price of $80,000.

“Markets seem to be cooling down,” said [Vetle Lunde](https://www.linkedin.com/in/vetle-a-g-lunde), head of research at K33, adding that the narrowing of the futures premium “might have been a subtle hint of moderating risk profiles.”

#### Trump’s pledges

Bitcoin has jumped about 30% since the US election on 5 November in response to President-elect Trump’s pro-crypto stance. The digital asset is now viewed as one of a suite of so-called Trump trades, and speculators are wondering how much impetus the rally has left.

Trump has pledged to create a friendly regulatory framework for crypto, set up a strategic Bitcoin stockpile and make the US the global hub for the industry. A onetime crypto sceptic, Trump changed tack after digital-asset firms spent heavily during election campaigning to promote their interests. Questions remain about the feasibility and implementation timeline of his promises.

Investors poured a net $4.7-billion into US spot-Bitcoin exchange-traded funds after Election Day. The 12 funds, from issuers including BlackRock Inc. and Fidelity Investments, now have total assets of about $94-billion, based on figures compiled by Bloomberg.

#### Volatility expected

“It’s all pure speculative trading right now,” said [James Davies](https://www.linkedin.com/in/jlldavies/), chief executive officer at on-chain futures and options trading platform Crypto Valley Exchange. “Expect lots of volatility and a lack of clear signals for a while, whilst we wait for policy announcements in the US.”

Davies flagged $90,000 as a key marker to watch to see if it acts as a “resistance level, or if we are well past it.” One of the highest concentrations of bullish Bitcoin options bets is for the $100,000 strike, [data](https://www.deribit.com/statistics/BTC/metrics/options) from the Deribit exchange show.

Outside of Bitcoin, smaller tokens such as second-ranked Ether and meme-crowd favourite Dogecoin were mixed on Friday, in line with easing risk appetite as traders pared bets on Fed rate cuts following Powell’s comments.