Bitcoin reached a new high near $81,000, fueled by optimism following U.S. elections that brought several pro-crypto lawmakers into office. With investors betting on the cryptocurrency surpassing $90,000, open interest in call options on Deribit, a popular derivatives exchange, surged to over $2.8 billion. The spike indicates strong market sentiment for further gains, especially as President-elect Donald Trump champions a pro-crypto stance.
Rising Options and Futures Demand
Deribit’s options market showed a marked bias toward upward momentum, with call options trading at a premium to puts. Analysts like K33 Research’s Vetle Lunde highlighted that rising open interest in “out-of-the-money” calls points to a bullish outlook. On the CME derivatives exchange, bitcoin and ether futures premiums also soared, nearly doubling from pre-election levels to around 14%, underscoring robust institutional interest.
Bitcoin’s rise has been mirrored in perpetual swaps—contracts without a fixed expiration—where open interest grew in tandem with market sentiment. However, weekend liquidity constraints often amplify price swings, which may ease once traditional markets reopen.
A Pro-Crypto Administration Fuels Market Optimism
Trump’s commitment to establishing the U.S. as a “crypto capital” through measures like a national crypto stockpile and interest rate cuts has resonated across the market. As the Federal Reserve recently approved a second interest rate reduction, crypto prices soared, benefiting from cheaper borrowing rates. Ether and Solana outpaced Bitcoin’s gains, with Solana’s market cap topping $100 billion.
In fintech, crypto-aligned companies rallied strongly. Coinbase, which heavily backed pro-crypto candidates, saw a 48% jump in share value. With Trump aiming to replace SEC Chair Gary Gensler, companies like Coinbase and Robinhood, which both face regulatory scrutiny, are hopeful for a more favorable regulatory environment.
Robinhood’s crypto division leader, Johann Kerbrat, underscored the company’s goal to collaborate with policymakers to ensure customer protection as the industry evolves. Coinbase’s legal chief, Paul Grewal, noted that election results indicate “the most pro-crypto Congress ever,” underscoring a significant shift in the legislative landscape.
