Bitcoin Hits Record High Near $95,000 Amid Trump-Backed Crypto Investments

By Medha Singh, Ankur Banerjee, and Gertrude Chavez-Dreyfuss

Bitcoin, the leading cryptocurrency, has surged to a new all-time high just under $95,000 following reports of Donald Trump’s social media company’s interest in acquiring Bakkt, a crypto trading firm. This development has fueled optimism for a crypto-friendly environment under the upcoming administration.

Trump’s Influence on Bitcoin

  • Bitcoin has more than doubled in value this year, currently trading at $93,709.
  • The potential acquisition of Bakkt by Trump Media and Technology Group, which operates Truth Social, has contributed to Bitcoin’s rally.
  • Traders are optimistic about a less restrictive regulatory environment for cryptocurrencies under Trump’s leadership, leading to a surge of over 40% since the U.S. presidential election on November 5th.

    Bitcoin’s Potential Growth

  • Nikhil Bhatia, founder of The Bitcoin Layer, describes Bitcoin as "digital gold" with an algorithmically limited supply function.
  • Bhatia projects a price of around $800,000 for 1 BTC if Bitcoin were to reach the market size of gold ($17 trillion).
  • Trump’s private meeting with Coinbase CEO Brian Armstrong and the successful options trading debut for BlackRock’s spot Bitcoin ETF further boosted market sentiment.

    Options Trading and Market Outlook

  • The options trading debut for BlackRock’s spot Bitcoin ETF on Nasdaq saw a bullish call-to-put ratio of 4.4:1, indicating positive market sentiment.
  • Analysts anticipate increased trading volumes for exchange-traded products (ETPs) as a result of the growing excitement in the crypto sector.
  • The global cryptocurrency market has surpassed $3 trillion in value, reaching a new record high.

    Market Analysis and Future Prospects

  • U.S. spot Bitcoin exchange-traded products have attracted approximately $4.2 billion in inflows since Trump’s election victory.
  • Chris Weston, head of research at Pepperstone, notes significant buying pressure for Bitcoin, suggesting the potential for further price appreciation.

    Conclusion

    The surge in Bitcoin’s price and market value, driven by Trump’s involvement in the crypto sector, underscores the increasing mainstream acceptance and adoption of cryptocurrencies. With the market poised for further growth and institutional interest on the rise, Bitcoin’s potential to revolutionize the financial landscape remains a compelling narrative for investors and traders alike.

    Investors should remain vigilant and stay informed about market developments to capitalize on potential opportunities and navigate the evolving landscape of digital assets effectively.

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