Bitcoin's popularity is declining as traders keep a close eye on developments following President-elect Trump's support for cryptocurrencies.

Since the US election on November 5, Bitcoin has experienced a significant increase of around 30%. However, recent market activity suggests a cooling trend. The cryptocurrency briefly dropped below $87,000 after Federal Reserve Chair Jerome Powell indicated that interest-rate cuts would not be expedited. Nonetheless, it later recovered to around $90,265.

In the derivatives market, the premium for CME-listed Bitcoin futures has decreased compared to the spot market price, indicating a shift in investor sentiment. Furthermore, there has been a notable increase in open interest for bearish options with a strike price of $80,000, suggesting that US-based institutional investors are becoming more cautious. According to Vetle Lunde, head of research at K33, this decrease in the futures premium may reflect a decrease in risk appetite among traders.