Donald Trump's victory in the US presidential election led to significant volatility in Bitcoin derivatives markets.
Rise in Futures Open Interest
According to Coinglass data, the open interest in Bitcoin futures skyrocketed from $39 billion on election day to $60.9 billion by November 22, sparking a surge in trading activity and market speculation.
Analysts' Insights and Expectations
Bitfinex analysts believe that the increase in open interest reflects a growing appetite for Bitcoin derivatives as traders and institutions strengthen their positions in anticipation of further price gains. As they noted, 'leverage accumulation is a common tool for traders, including institutions, to position for anticipated price movements.'
Impact of Trump's Presidency on the Market
The surge in Bitcoin derivatives trading has been attributed in part to market sentiment surrounding Trump's presidency. Bitget CEO Gracy Chen stated that Trump's victory played a role in fueling optimism and added, 'the increasing leverage in the market proves that investors are starting to value the market based on technical and regulatory developments.'
While Trump's presidency fosters a more favorable environment for Bitcoin, potential price corrections due to its volatility should be considered.
