Bitcoin (BTC) is experiencing a remarkable surge, breaking through the $97,000 threshold for the first time in early trading on Thursday. This impressive rise is largely credited to a rally driven by recent wins in Republican elections.
Market Momentum Fueled by Politics
In early Asian trading, Bitcoin climbed past $97,500, drawing near to the significant $100,000 milestone, which would push its market capitalization above $2 trillion. Over the last two weeks, Bitcoin’s price has jumped nearly 30%. This increase has been heavily influenced by the current U.S. government’s welcoming attitude toward cryptocurrencies, combined with recent interest rate cuts from the Federal Reserve, which have heightened investors’ willingness to take on risk. Many traders are labeling this upward movement in various asset classes, including stocks and bonds, as the “Trump trade,” referencing the momentum sparked by Donald Trump’s electoral success.
Institutional Interest Grows with New Options
Amid this bullish sentiment, interest in BlackRock’s newly introduced IBIT options—created to track Bitcoin prices and settled in real Bitcoin—has skyrocketed. This has provided a robust underpinning for the market’s latest growth. Reports suggest that Trump’s transition team is exploring candidates for the next SEC chair, potentially considering Teresa Goody Guillén from BakerHostetler, who is recognized for her blockchain expertise.
On their very first day, the IBIT options achieved an impressive milestone of $2 billion, signaling a noteworthy shift in market dynamics. Insights from Singapore’s QCP Capital highlight a strong debut for BlackRock’s Bitcoin spot ETF options, with 73,000 contracts traded within the first hour alone. Notably, the options showcased a bullish call-to-put ratio of 4.4:1, placing the IBIT options among the top 20 most actively traded non-index options, indicating a growing institutional confidence in Bitcoin’s status as a mainstream asset.
Future Predictions for Bitcoin
In light of the recent Republican victory, finance analysts are setting their sights high for Bitcoin’s future, with some predictions suggesting a price target soaring to $200,000 in the not-so-distant future.
Source: Coindesk.com
