Bitcoin continues its upward momentum, with the price surging past $97,000 on Thursday. This rally, triggered by a Republican victory earlier in the month, shows no signs of slowing down. In fact, BTC traded above $97,500 in early Asian trading hours, inching closer to the significant $100,000 mark. If Bitcoin reaches this milestone, it would exceed a $2 trillion market capitalization.
Over the past 14 days, Bitcoin has seen an impressive 30% increase in value. This surge is attributed to the pro-crypto stance of the U.S. government and recent rate cuts by the Federal Reserve, which have reignited risk appetite among traders. Market participants are calling this bullish trend a “Trump trade,” as various asset classes, including stocks and bonds, have been on the rise since Donald Trump’s election win.
The introduction of BlackRock IBIT options, which are physically settled and track bitcoin prices, has further fueled this uptrend. The market response to these options has been overwhelmingly positive, with trading volume reaching $2 billion on the first day alone. This milestone indicates a shift in the market structure, as institutional confidence in Bitcoin as a mainstream asset class grows.
Moreover, there are talks within the Trump transition team of appointing a pro-crypto individual, Teresa Goody Guillén, as the next SEC chair. This potential move signals a favorable regulatory environment for cryptocurrencies, adding to the positive sentiment surrounding Bitcoin.
Analysts and financial institutions have set ambitious price targets for Bitcoin, with some predicting it could reach $200,000 in the coming months. This optimism is driven by the current market conditions and growing institutional interest in digital assets.
As Bitcoin continues its upward trajectory, investors are closely watching for any signs of a potential pullback or correction. However, for now, the momentum remains strong, and the cryptocurrency market is experiencing a period of heightened excitement and activity.
