Bitcoin hit a new all-time high on Thursday, surpassing $97,000 as investor sentiment remained buoyant, driven by speculation surrounding a friendlier regulatory environment under a second Donald Trump presidency. The cryptocurrency briefly reached $97,792.6 before slightly retracting to $96,909.4 by 00:54 ET (05:54 GMT), positioning it within striking distance of the highly anticipated $100,000 milestone.
The rally comes after the launch of options trading for BlackRock’s iShares Bitcoin Trust ETF earlier this week, which has attracted fresh speculative capital into the crypto market. The launch has spurred a significant uptick in trading volumes, with nearly $1.9 billion in notional exposure recorded, according to Bloomberg Intelligence analyst James Seyffart.
Bitcoin’s performance has outpaced that of most major altcoins, many of which have remained stagnant or showed minimal gains on Thursday. While altcoins briefly rallied earlier in the month, the momentum has largely dissipated, with Bitcoin continuing to dominate the market.
Trump’s Election Win Drives Crypto Optimism
The latest surge in Bitcoin’s price is closely tied to optimism surrounding Trump’s victory in the 2024 U.S. presidential election. Trump, who has championed a pro-crypto platform during his campaign, is now considering the creation of a new White House position focused on cryptocurrency regulation, Bloomberg reported this week. Analysts suggest that, should Bitcoin’s upward momentum continue, the cryptocurrency could soon breach the $100,000 threshold. However, some caution that Bitcoin is edging into overbought territory, increasing the risk of a correction if traders choose to lock in recent gains.
In a campaign promise that resonated with crypto enthusiasts, Trump has vowed to make America the “crypto capital of the world,” sparking further speculation about the potential regulatory environment under his administration.
Bitcoin ETF Options Boost Market Activity
The introduction of Bitcoin ETF options has also played a significant role in driving the recent price gains. The options launch has tapped into the speculative nature of crypto markets, further stimulating capital inflows. Analysts expect the continued growth in options trading to provide additional support for Bitcoin’s price in the coming weeks.
Coinbase CEO Sells $300M in Shares
In related news, Coinbase CEO Brian Armstrong sold nearly $300 million worth of shares in the company this week, according to regulatory filings. Armstrong’s sale comes as Coinbase shares soared to a three-year high following Trump’s election win. The exchange’s stock has gained more than 100% in 2024, reflecting broader optimism in the crypto sector.
Altcoins Largely Lag Bitcoin
While Bitcoin has outpaced other cryptocurrencies, many altcoins have shown lackluster performance. Ethereum (ETH), the world’s second-largest cryptocurrency, edged up 0.1% to $3,111.0. Meanwhile, Dogecoin, which spiked in popularity following references to it by Trump, fell 1% to $0.383335, although it remains close to its recent three-year high.
Other major altcoins, including XRP, Solana (SOL), Cardano (ADA), and Polygon (MATIC), saw modest gains ranging from 0.6% to 3%, though their performance remained largely range-bound for the week.
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