Trump Pushes for Crypto-Friendly Environment in the U.S., Including a National Bitcoin Reserve

Traders are banking some of the profits sparked by the Republican’s crypto cheerleading and are waiting to see if the mooted reserve is feasible.

People are waiting to see if Trump will follow through on his promise to create a crypto-friendly environment in the U.S. Some traders are banking some of the profits sparked by the Republican’s crypto cheerleading.

Meanwhile, the crypto market is preparing for the expiry of a large quantity of Bitcoin and Ether options contracts on Friday — an event that could have a significant impact on the prices of the two digital assets.

According to prime broker FalconX, the options expiry is one of the biggest such events in the history of digital assets. The notional value of the Bitcoin contracts on the Deribit exchange — one of the largest for digital-asset derivatives — exceeds US$14 billion, while the equivalent figure for Ether is about US$3.8 billion.

“This is a massive options expiry, and it's going to be interesting to see how the market reacts,” said Sean McNulty, director of trading at liquidity provider Arbelos Markets.

“There's a lot of potential for volatility, especially if the prices of Bitcoin and Ether move sharply in either direction.”

McNulty added that the options expiry could also lead to a “choppy market” as traders adjust their positions in response to the changing market conditions.

“If the prices of Bitcoin and Ether don't move much, we could see a relatively dull trading session,” he said.

“But if the prices move quickly, it's going to be a wild ride.”

The options expiry is also likely to have an impact on the trading volumes of Bitcoin and Ether. According to data from CoinGecko, the average daily trading volume of Bitcoin is currently around US$30 billion, while the average daily trading volume of Ether is around US$10 billion.

However, these trading volumes are expected to increase significantly in the lead-up to the options expiry, as traders look to capitalize on any last-minute price movements.