The futures market indicates that the surge to record highs triggered by Trump's victory in the US presidential election may have just begun. $Bitcoin (BTC.CC)$ The record-breaking surge may have just begun.

K33 Research Director Vetle Lunde stated: "Against the backdrop of soaring prices, we see an immediate rotation in risk appetite in derivatives. The basis at the CME Group has surged from 7% yesterday to over 15% today, while the trading price of perpetual contracts has risen from a discount to spot market prices to the highest premium since March."

The Bitcoin futures contracts at the CME Group derivatives exchange are one of the hottest ways for US institutional investors to profit in a bull market. The so-called basis, which is the difference between spot market prices and futures contract prices, has been in a depressed state in the days leading up to the election. At the same time, perpetual futures contracts are one of the most popular choices for offshore investors, with higher funding rates attracting increasing attention, indicating a growing demand for leverage in the market.

Bitcoin has surpassed $75,000 for the first time, as people anticipate more crypto-friendly policies and regulations from Trump's second term as president. Even before yesterday's vote, the Bitcoin options market had already priced Bitcoin at $80,000 by the end of November.

Michael Safai, founding partner of the algo trading company Dexterity Capital, said: "Trump promised to reduce US regulatory intervention, something crypto investors have been clamoring for in recent years."

Despite one of the largest outflows of funds from exchange-traded funds backed by the largest crypto on Monday, traders expect a reversal during the US session on Wednesday, with significant potential for positive fund outflows.

"The European trading session has been relatively calm, but Bitcoin seems to have found support at historical highs, which is an encouraging sign indicating further upward movement," Lunde said. "With the increasing premium (arbitrage opportunities) on the Chicago Mercantile Exchange and clearer post-election outlook, we expect a significant inflow of ETF funds today, which should support Bitcoin's strong performance."

Some traders have expressed that this rally does bring the risk of a price pullback. The last bull market following the launch of Bitcoin ETF in March triggered large-scale liquidation in both directions.

Nathanaël Cohen, co-founder of INDIGO Fund, stated: "Due to profit taking, we will remain cautious on pullbacks at these levels, but we expect the overall trend over the next few quarters to be upward."

Editor/rice