Bitcoin, the world’s largest cryptocurrency, hit a record high of $95,000 on Thursday before settling slightly lower at $94,750 as of 6:45 AM.
This latest surge marks an over 100% increase in its value this year, cementing Bitcoin’s position as a key player in the global financial markets.
The sharp rise has been driven by several major developments in the cryptocurrency space, including the introduction of options trading for BlackRock’s iShares Bitcoin Trust and speculation surrounding former US President Donald Trump’s social media company exploring a deal to acquire crypto trading firm Bakkt.
“Bitcoin continues its bullish streak creating a new all-time high of $95,000. Market sentiment grew stronger from Bloomberg’s report of Trump’s plan to establish a dedicated White House role for crypto policy,” said Edul Patel, CEO Of Mudrex.
REASONS BEHIND THE SURGE
Reports that Donald Trump’s media company is in talks to acquire Bakkt, a crypto trading platform, have raised expectations of a potentially favourable environment for cryptocurrencies under his influence. This news has led to renewed interest in Bitcoin as a financial asset, further driving its price upward.
Introduction of options trading
The debut of options trading for BlackRock’s iShares Bitcoin Trust ETF on the Nasdaq has boosted market sentiment. According to QCP Capital, the initial trading session saw a strong call-to-put ratio of 4.4:1, indicating bullish investor interest.
With 354,000 contracts traded and $1.9 billion in notional exposure during its debut, this milestone underscores the growing institutional interest in Bitcoin. Sumit Gupta, Co-founder of CoinDCX, said, “The introduction of options trading for BlackRock’s iShares Bitcoin Trust marks a turning point in Bitcoin’s journey. It highlights growing institutional interest and provides investors with more ways to gain exposure to the asset.”
Institutional inflows post Trump’s election victory
Since Trump’s election victory, US spot Bitcoin exchange-traded products have attracted approximately $4.2 billion in inflows. This represents 15% of the total inflows since such products were introduced on US exchanges earlier this year. Analysts suggest that these inflows are a reflection of increased investor confidence in Bitcoin as a mainstream asset class.
Mainstream adoption gaining momentum
Bitcoin’s consistent price rally signals a broader shift towards mainstream adoption. Industry analysts believe that institutional participation, along with growing retail interest, is paving the way for cryptocurrencies to become a part of global investment portfolios.
“The anticipation of faster regulatory clarity coupled with BlackRock’s Bitcoin ETF options projecting a $176k price target by 2026 has driven BTC’s price to the $95K milestone. BTC now faces resistance at the previous high of $95,900, with support holding at $92,800, as investors remain confident about its upward trajectory,” said Patel.