Crypto: How American Banks Trapped The Post-Election Market

The crypto market’s post-U.S. election surge has generated colossal gains for Wall Street, with profits estimated at $1.4 billion on futures alone, according to the latest data from Forbes.

American banks ride the bullish wave of Bitcoin

American banking giants have massively invested in the Bitcoin derivatives markets in the weeks leading up to the presidential election.

The CFTC data reveals that these institutions have accumulated 10,564 new futures contracts, representing 52,820 BTC. At the Chicago Mercantile Exchange (CME), their long positions now reach $3 billion, with an average entry price of $65,800.

JPMorgan, Goldman Sachs, and SG Americas Securities are among the key players in this digital gold rush. Between October 8 and 15, their open positions surged from 1,200 to 11,766 contracts, increasing from $373 million to $3.8 billion. At current prices, these positions are valued at $5.3 billion, generating a performance of 36% in less than a month.

Although banks are limited in their ability to directly hold Bitcoins, they leverage derivatives and ETFs to capitalize on the volatility of the crypto market.

The impact of Trump’s victory on the crypto market

The bullish momentum of Bitcoin has significantly strengthened since the re-election of Donald Trump on November 6. Markets anticipate a more favorable approach from federal regulators under the new administration, propelling the entire crypto sector to new heights.

This confidence is also reflected in the performance of companies in the sector. Coinbase (COIN) saw its stock jump 20% on November 11, exceeding $300 for the first time since 2021. The total market capitalization of crypto now reaches $3.17 trillion, a 119% increase year-on-year.

The combination of favorable political factors and growing institutional interest continues to support the bullish momentum of Bitcoin, suggesting new opportunities for traditional finance players.