The bullish sentiment seen after Donald Trump’s victory in the Nov. 5 Presidential elections has completely fizzled out, according to an indicator tied to the CME bitcoin (BTC) futures.
The indicator in consideration is the spread between “continuous” next month and front-month standard BTC futures trading on the global derivatives giant. A continuous contract is a calculated representation of a series of successively expiring futures contracts, allowing for a continuous historical data series for analysis.
The spread has narrowed to $495, the lowest since Nov. 5, having peaked at $1,705 on Dec. 17, according to data source TradingView. In other words, it has completely reversed the Trump bump in a sign of weakening bullish sentiment in the market.
“The narrowing spread between front-month and next-month CME Bitcoin futures could suggest traders are tempering their price expectations,” Thomas Erdösi, head of product at CF Benchmarks,…
