Bitcoin (BTC) continues to climb, trading above $97,500 during early Asian hours, only 3% shy of reaching the symbolic $100,000 milestone, which would push its market capitalization above $2 trillion. This surge comes on the heels of a rally spurred by the recent Republican election win, which has buoyed the crypto market, with BTC seeing an increase of nearly 30% over the past two weeks.
The price jump is being attributed to a favorable political environment in the U.S. and renewed risk appetite following the Federal Reserve’s recent interest rate cuts. This period of growth, often referred to as the “Trump trade,” has seen widespread gains across various asset classes, including stocks, bonds, and now, Bitcoin.
A significant factor driving the rally is the debut of BlackRock’s IBIT options, which track Bitcoin’s price and are physically settled. These options, which saw $2 billion in trading volume on their first day, have sparked a shift in the market. According to analysts at QCP Capital, IBIT options made a strong entrance, with 73,000 contracts traded in the first hour, reflecting a bullish sentiment in the market. This positions IBIT among the top 20 most active non-index options, further signaling growing institutional confidence in Bitcoin as it gains acceptance as a mainstream asset class.
The ongoing rally is also supported by the possibility of pro-crypto leadership in the U.S. government. Industry sources revealed that Teresa Goody Guillén, a prominent blockchain attorney, is under consideration to lead the SEC, a development that has fueled further optimism among traders.
With Bitcoin continuing to break new records and traditional financial analysts predicting targets as high as $200,000 in the coming months, the future looks promising for the cryptocurrency as it attracts more institutional investors and mainstream attention.
