Bitcoin (BTC) has broken through $97,500 in the morning hours! It’s now just 3% from $100,000, which would put its market cap over $2 trillion and cement its position as the biggest player in the financial world.
This is part of what traders are calling the “Bitcoin Trump rally” after the Republican win in the US elections. Over the past two weeks, Bitcoin has gone up 30%, and it’s a combination of macro and pro-crypto policy expectations under the new administration.
Pro-Crypto Policies and Rate Cuts
This comes as the US digital assets are looking up. With a government seen as crypto friendly, traders expect regulatory clarity and policies to drive more adoption of blockchain.
Additionally, rate cuts have added fuel to the fire. Lower rates make high risk assets like cryptocurrencies more attractive and Bitcoin is able to ride the renewed interest in the market.
BlackRock IBIT Options Boost Institutional Confidence
One of the catalysts for the rally has been the success of BlackRock’s Bitcoin ETF options (IBIT) which launched this week. IBIT options hit $2 billion in trading in the first day, an all time high of institutional involvement.
QCP Capital, a Singapore based trading firm, posted in Telegram that IBIT options traded 73,000 contracts in the first hour. They noted a bullish call to put ratio of 4.4:1.
“This will bring in new investor demographics and more diverse trading strategies” QCP Capital said. “This will help to stabilize Bitcoin’s price and reduce downside risk and further embed Bitcoin into the financial mainstream.”
Market Implications and Forecast
Institutional interest is driving analysts to predict even higher prices for BTC in the coming months. Some traditional financial institutions are targeting $200,000 and above, citing regulatory clarity, more adoption and a favourable market under the new administration.
Speculation around key appointments in the Trump administration is also adding to the excitement. Teresa Goody Guillén, a blockchain expert and partner at BakerHostetler, is being considered for the SEC chair role. If she gets the job, it will be a regulatory environment that favors innovation in the cryptocurrency space.
Conclusion: The Road to $100K
As BTC gets closer to $100,000 it’s reflecting the changing market. Bitcoin ETFs, institutional trading options and pro-crypto government policies have changed the narrative around digital assets.
This is what traders are calling the Bitcoin Trump rally and it looks like a new era for BTC where it’s not just an asset but the foundation.
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