Analysis: The spread of Bitcoin CME futures narrows to 490 US dollars, Trump effect fades

According to CoinDesk, data from the Chicago Mercantile Exchange (CME) Bitcoin futures market shows that bullish sentiment following Trump's election victory has completely faded. The price difference between CME Bitcoin "continuous" next month and near-month standard futures has narrowed to $495, dropping to its lowest level since November 5th, significantly down from the peak of $1,705 on December 17th.

Thomas Erdösi, product manager at CF Benchmarks said: The narrowing of the price spread between CME Bitcoin near-month and next-month futures indicates traders are adjusting their price expectations.

Since early March, the basis for near-term contracts has been significantly reduced, indicating that the market has fully digested Trump's election as a major catalyst previously driving market growth. Analysis suggests that markets may have abandoned narratives like "a pro-cryptocurrency president is beneficial for industry", with macro correlations re-emerging as dominant factors in the market. Despite this narrowing spread, CME future curves remain in contango state suggesting recent market adjustments are primarily driven by non-leveraged spot longs being squeezed out of the market rather than broader contagion.