TechFlow news, March 12 — According to CoinDesk, data from the CME Group's Bitcoin futures market shows that the bullish sentiment following Trump’s election victory has fully dissipated. The spread between CME Bitcoin “front-month” and next-month standard futures has narrowed to $495, the lowest level since November 5, a sharp decline from the peak of $1,705 on December 17.
Thomas Erdösi, Head of Product at CF Benchmarks, said: "The narrowing spread between front-month and next-month CME Bitcoin futures indicates traders are adjusting their price expectations." Since early March, the front-month contract basis has dropped significantly, suggesting the market has fully priced out Trump’s election—a previously key catalyst for the rally.
Analysis suggests the market may have abandoned the narrative that a "crypto-friendly president benefits the industry," with macro correlations regaining dominance. Although the spread has narrowed, the CME futures curve remains in contango, indicating that the recent correction was primarily driven by de-leveraging of unleveraged spot longs exiting the market, rather than broader market contagion.
