Bitcoin (BTC) continues to gain momentum, with a rally sparked by a Republican victory earlier this month propelling the cryptocurrency past the $97,000 mark for the first time on Thursday.
Bitcoin was observed trading above $97,500 during the early hours in Asia, approaching within 3% of the significant $100,000 mark, a threshold that would elevate its market capitalisation beyond $2 trillion.
Recent data indicates a nearly 30% increase over the past two weeks, attributed to a supportive stance towards cryptocurrency from the U.S. government and a new series of rate cuts by the Federal Reserve, which has rekindled risk appetite among traders. Traders informally refer to the recent market surge as a “Trump trade,” as various asset classes, including stocks and bonds, have experienced gains following Donald Trump’s election victory.
The recent surge in interest surrounding the newly introduced BlackRock IBIT options, designed to track bitcoin prices and settle physically alongside a cabinet that supports cryptocurrency, forms a solid foundation for the current market rally.
According to a report from CoinDesk on Wednesday, sources within the industry indicate that the Trump transition team is evaluating Teresa Goody Guillén, a partner at the law firm BakerHostetler and co-lead of its blockchain team, as one of several candidates for the position of SEC chair.
On their inaugural day, IBIT options reached a remarkable $2 billion milestone, signalling a transformation in the market landscape.
In a notable development, the options market for BlackRock’s BTC spot ETF (IBIT) experienced a remarkable launch, with 73,000 contracts traded in the first hour on Tuesday. This surge was accompanied by a bullish call-to-put ratio of 4.4:1, according to a Telegram message from Singapore-based QCP Capital earlier on Thursday. “This activity positions IBIT within the top 20 most active non-index options, highlighting the increasing institutional confidence in Bitcoin as a recognised asset class.”
“The market response is expected to draw in new groups of investors and facilitate a variety of trading strategies, potentially mitigating volatility and downside risk, thereby reinforcing Bitcoin’s position in mainstream markets,” they stated.
Financial institutions and analysts within the traditional banking sector have set projections reaching as high as $200,000 in the upcoming months, contingent on a Republican victory.