Bitcoin Reaches All-Time High of $97,852 Amid Market Surge
Bitcoin has reached a new all-time high of $97,852 on Binance, marking a 5% increase in the last 24 hours and a 43% gain over the past 16 days since November 5. The upward momentum continues as several factors drive this rally:
#1 US Strategic Bitcoin Reserve Trade
Market sentiment shifted following Donald Trump's presidential election victory, evolving from the "Trump trade" to the "US Bitcoin Reserve Trade." Speculation suggests Trump may establish a Strategic Bitcoin Reserve (SBR), as pledged at the Bitcoin 2024 conference. Industry figures, including David Bailey of BTC Inc and Dennis Porter of Satoshi Act Fund, advocate for swift establishment through an executive order, warning that the U.S. risks lagging in global BTC accumulation.
Bailey indicated that at least one nation-state is now among the top five Bitcoin holders. Mike Novogratz, CEO of Galaxy Digital, confirmed countries are buying BTC in large volumes. The "US Bitcoin Reserve Trade" may continue until Trump's inauguration on January 20, with potential plans to move over 208,000 BTC into the reserve or adopt Senator Cynthia Lummis' proposal to purchase 1 million BTC over five years.
#2 Potential Appointment Of A ‘Crypto Czar’
Reports suggest Trump's team is considering a new White House position focused on Bitcoin and crypto policy. This role would be the first of its kind, highlighting the industry's growing influence. It remains unclear if the position will be senior staff or a "crypto czar" overseeing federal policy and regulation.
#3 Launch Of Bitcoin ETF Options
The introduction of Bitcoin ETF options has significantly impacted the market. BlackRock's iShares BTC Trust (IBIT) launched on November 19, 2024, with nearly $1.9 billion in notional exposure on its first trading day. James Seyffart noted a ratio of 4.4:1 between call and put options, contributing to Bitcoin's price surge.
Jeff Park, Head of Alpha Strategies at Bitwise Invest, described the approval of Bitcoin ETF options as revolutionary for the crypto market, allowing for exponential growth in Bitcoin's synthetic notional exposure.
#4 Surge In Spot Market And Bitcoin ETFs
The recent rally is also fueled by significant activity in the spot market. Yesterday, Bitcoin ETF inflows totaled $773.4 million, with BlackRock contributing $626.5 million. Over three days, U.S. spot Bitcoin ETFs purchased $1.856 billion worth of Bitcoin. The total net asset value of U.S. Bitcoin spot ETFs has surpassed $100 billion, achieved within ten months since twelve ETFs were issued in January.
At press time, BTC traded at $96,920.
