Bitcoin Surges 25% Post-Trump Victory: Institutions Eye Arbitrage Opportunities as Prices Approach $90,000

COINOTAG News, November 12th: Following Donald Trump’s recent victory in the U.S. presidential election, Bitcoin has surged approximately 25%. The anticipated introduction of a more crypto-friendly policy has propelled Bitcoin towards the $90,000 threshold. This movement has resulted in a significant widening of the spread between Bitcoin futures and spot prices, achieving the highest levels seen since March. Hedge funds are keenly engaging in Basis Trading, a strategy which involves purchasing Bitcoin in the spot market while concurrently selling futures contracts to capitalize on the price discrepancy. This rush could potentially amplify futures market valuations even further. Data from CF Benchmarks indicates that the basis on the CME is nearing 18%, with Bitcoin futures on this exchange outpacing those of other derivative offerings. Thomas Erdösi, the Head of Product at CF Benchmarks, remarked that institutions may now actively pursue arbitrage opportunities between the futures and spot price variations.