Today, Bitcoin hit a record high of $94,982.37 before ending at $93,709, up 1.6%. This increase coincides with rumors that Bakkt, a cryptocurrency trading company, is being pursued by Trump Media and Technology Group (TMTG), the former president’s social media company. This action has raised hopes that Trump’s administration may implement additional crypto-friendly regulations.
Considered by many to be “digital gold,” the cryptocurrency has more than doubled in value in 2024 and increased by more than 40% since Trump won the election on November 5. Analysts think that traders’ faith in Trump’s pro-crypto position is what is driving this increase.
Professor of finance at USC Marshall School of Business and creator of The Bitcoin Layer, Nikhil Bhatia, emphasized the special status of Bitcoin as a decentralized electronic currency with a finite supply. “If Bitcoin reaches gold’s $17 trillion market cap, its price could soar to $800,000 per coin,” he said.
Trump has reportedly had private talks with Coinbase CEO Brian Armstrong, suggesting possible partnerships in the cryptocurrency field, which has added to the optimistic vibe. A bullish call-to-put ratio of 4.4:1 propelled options trading to $1.9 billion in exposure on the first day of BlackRock’s recently introduced spot Bitcoin ETF’s Nasdaq debut.
J.P. Morgan analyst Kenneth Worthington predicted that the success of the ETF would lead to higher trading volumes in exchange-traded products associated with Bitcoin.
The global cryptocurrency market is now valued at an all-time high of $3 trillion thanks to the spike in the value of Bitcoin. Since Trump’s win, U.S. spot Bitcoin ETFs have received $4.2 billion in inflows, which represents 15% of all inflows since the ETFs’ launch in January.
Pepperstone’s Chris Weston credited strong purchasing pressure for the surge. “Another significant move could trigger further investment from momentum traders,” he stated. As investors embrace its potential in the face of shifting regulatory winds, Bitcoin’s rise highlights its increasing relevance in the financial scene.