Bitcoin surged to a record high, inching close to $95,000 after reports surfaced that Donald Trump’s social media company is in discussions to acquire crypto trading firm Bakkt. The news has lit hopes of optimism for a crypto-friendly policy environment under the Trump administration.
Bitcoin, the most widely held cryptocurrency, reached $94,982.37 before settling in at $93,709, representing a 1.6% gain on the day. The cryptocurrency has more than doubled this year and surged above 40% since the U.S. presidential election on November 5. Traders are now wagering on fewer regulatory obstacles thanks to Trump’s avowed enthusiasm for virtual currencies, which could perk up the overall crypto market.
As per the Financial Times, Trump Media and Technology Group, which owns Truth Social, is close to an all-stock deal to purchase Bakkt. Bakkt, which is backed by Intercontinental Exchange, specializes in digital asset trading and payments.
Bitcoin reaches record high point, founder of Bitcoin layer says it may cross 6-digit soon
To crypto enthusiasts, the rise is proof of its unique value. “Bitcoin represents one innovation that cannot be copied: decentralized electronic cash,” said Nikhil Bhatia, founder of The Bitcoin Layer and adjunct finance professor at USC Marshall School of Business. He thinks that Bitcoin’s limited supply and “digital gold” status could eventually drive the price to $800,000 if it reaches gold’s $17 trillion market capitalization.
Trump’s private meetings with crypto leaders, including Coinbase CEO Brian Armstrong, earlier this week further solidified market confidence.
Options for ETFs and Growing Market Momentum
Options trading for BlackRock’s spot Bitcoin ETF went live on the Nasdaq, further pushing the asset into more bullish territory. At a call-to-put ratio of 4.4:1 and $1.9 billion in notional exposure, the launch of this ETF is indicative of very solid investor interest. According to analysts, such options could spur more volumes and help Bitcoin climb even higher.
With excitement mounting, the value of the global cryptocurrency market has risen to a record $3 trillion. U.S. spot Bitcoin exchange-traded products have seen $4.2 billion of inflows since Trump’s election victory, highlighting the growing interest by institutions.
Chris Weston, Pepperstone’s head of research, thinks demand is strong for Bitcoin, and there is still further upside. “A fresh push could spark a wave of new buyers,” Weston said.
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