The sentiment in the bitcoin market following Donald Trump's election victory has diminished, as shown by the narrowing spread between the next month and front-month BTC futures on the CME. The spread has decreased to $495, its lowest since November 5, reversing the previous spike attributed to Trump's win. Traders appear to be moderating their price expectations, suggesting that the bullish effects of a pro-crypto president are no longer influencing market conditions, with macroeconomic factors taking precedence. Both BTC and the Nasdaq have dropped significantly since early February due to geopolitical uncertainties and inflation concerns. Additionally, disappointment over a lack of new bitcoin purchases under Trump's strategic digital asset reserve plan has exacerbated market instability. While the futures spread has narrowed, the market remains in contango, indicating that longer-dated futures are still trading at a premium compared to near-dated contracts. This suggests that the current market dynamics are influenced by unlevered spot positions rather than widespread market contagion.

Source đź”—