The Trump Effect on Bitcoin Ended: Analyst Revealed the Level Expected to Retreat! - Coin Bulletin

The upward trend following Trump's election victory in Bitcoin (BTC) futures completely disappeared, as markets have now left behind the expectation that the US President's pro-crypto stance will affect the price.

After the election victory of US President Donald Trump on November 5, the positive atmosphere in the Bitcoin market quickly dissipated. On CME, the spread between the near-term contract and the next month's contract for Bitcoin futures traded on the Chicago Mercantile Exchange fell to $495.

According to TradingView data, this figure indicates the lowest level since Trump's election victory on November 5th. Previously, this difference peaked at 1.705 dollars on December 17th, giving a serious bullish signal in the markets.

CF Benchmarks Product Director Thomas Erdösi said that this decrease in CME Bitcoin futures contracts is an indication that investors have downwardly revised their price expectations. According to Erdösi, the significant price decline in futures contracts since March indicates that investors now believe that the positive expectation brought by Trump's victory is fully priced in.

(# Trump's reserve decision disappointed the market

Last week, the Trump administration announced its plan to create a digital asset reserve. However, contrary to market expectations, this reserve includes existing Bitcoin held by the government or seized from criminal operations, rather than making new Bitcoin purchases. Ian Balina, CEO of Token Metrics, stated that the market was expecting new Bitcoin purchases, and the failure to do so has led to disappointment and a sharp drop in prices.

FxPro Chief Analyst Alex Kuptsikevich, on the other hand, said he expects a new pullback in the 70,000-74,000 dollar range for Bitcoin price. Kuptsikevich believes that Bitcoin's recent recovery will be more limited in the short term due to the increasing influence of traditional financial companies on the market.

LVRG Research Director Nick Ruck also reported that speculation about the strategic Bitcoin reserve decision potentially including popular altcoins such as XRP, SOL, and ADA in the future has positively influenced the market. This is cited as one of the factors explaining the stronger-than-expected rise in altcoin prices.