Bitcoin Price Almost Hits $98,000: Key Reasons Behind The Rally

4 months ago

Bitcoin has reached a caller all-time high, surging to $97,852 connected Binance. The cryptocurrency is up 5% successful the past 24 hours and has gained an awesome 43% implicit the past 16 days since November 5. The momentum shows nary signs of slowing arsenic BTC terms continues its dependable ascent. Several cardinal factors are driving this singular rally:

#1 US Strategic Bitcoin Reserve Trade

Following Donald Trump’s triumph successful the US statesmanlike election, marketplace sentiment has shifted significantly. The archetypal “Trump trade” has evolved into the “US Bitcoin Reserve Trade,” fueled by speculation that President-elect Trump whitethorn found a Strategic Bitcoin Reserve (SBR). This follows his pledge astatine the Bitcoin 2024 league successful Nashville.

Industry insiders similar David Bailey, CEO of BTC Inc and a Trump run advisor, and Dennis Porter, CEO of Satoshi Act Fund, person hinted astatine the anticipation of the SBR becoming a reality. Both person urged that the SBR beryllium established wrong the archetypal 100 days of Trump’s presidency done an enforcement order. They pass of the United States perchance falling down successful the planetary contention to accumulate BTC.

Bailey revealed connected November 9, “There is astatine slightest 1 nation-state that has been actively acquiring Bitcoin and is present a apical 5 holder. Hopefully, we perceive from them soon.” He emphasized his certainty with a meme, indicating his accusation is based connected cognition alternatively than speculation. Mike Novogratz, CEO of Galaxy Digital, confirmed successful a caller interrogation with Bloomberg TV that “countries are already buying BTC successful immense volumes.”

The “US Bitcoin Reserve Trade” is expected to proceed until Trump’s inauguration connected January 20. It remains to beryllium seen whether Trump volition travel done connected his promises, perchance moving implicit 208,000 BTC confiscated by instrumentality enforcement into the reserve oregon adjacent adopting Senator Cynthia Lummis’ Bitcoin Act connection to acquisition 1 cardinal BTC implicit 5 years.

#2 Potential Appointment Of A ‘Crypto Czar’

A leak connected Wednesday suggests that President-elect Trump’s squad is successful discussions astir creating a caller White House presumption dedicated solely to Bitcoin and crypto policy. Sources acquainted with the modulation efforts bespeak that candidates are being vetted for this role.

If established, it would beryllium the first-ever Bitcoin and crypto-specific White House position, underscoring the power the nascent manufacture stands to wield successful the incoming administration. It is unclear whether the relation volition beryllium a elder White House unit presumption oregon a “crypto czar” overseeing argumentation and regularisation crossed the national government. Crypto manufacture advocates are pushing for the relation to person a nonstop enactment to Trump – a monolithic quality for the full industry.

#3 Launch Of Bitcoin ETF Options

The instauration of Bitcoin ETF options has had a important interaction connected the market. BlackRock’s iShares BTC Trust (IBIT) ETF options, launched connected November 19, 2024, saw an unprecedented $1.9 cardinal successful notional vulnerability connected their first time of trading. Bloomberg ETF adept James Seyffart stated, “Final tally of IBIT’s 1st time of options is conscionable shy of $1.9 cardinal successful notional vulnerability traded via 354k contracts. 289k were Calls & 65k were Puts. That’s a ratio of 4.4:1. These options were astir surely portion of the determination to the caller Bitcoin all-time highs today.”

Jeff Park, Head of Alpha Strategies astatine Bitwise Invest, precocious highlighted the game-changing quality of Bitcoin ETF options:

With the support by the SEC to database and commercialized Bitcoin ETF options, we are connected the verge of witnessing the astir bonzer upside ‘vol’ of ‘vol’ successful fiscal history. For the archetypal time, Bitcoin’s notional worth volition beryllium ‘fractionally banked’ with ETF options. This marks the astir monumental advancement imaginable for the crypto market.

Park explained that Bitcoin ETF options supply a regulated marketplace wherever the Options Clearing Corporation (OCC) protects clearing members from counterparty risks, allowing Bitcoin’s synthetic notional vulnerability to turn exponentially. He emphasized that this could pb to an explosive recursive effect connected Bitcoin’s terms owed to unsocial volatility characteristics and the “volatility smile.”

If determination were 1 happening to work contiguous re the game-changing quality of Bitcoin ETF options, work (and bookmark) this 1 for 2025 – it’s going to beryllium wild. pic.twitter.com/On2DmUsbHX

— Jeff Park (@dgt10011) September 20, 2024

#4 Surge In Spot Market And Bitcoin ETFs

The latest rally has besides been driven by important enactment successful the spot market. Heavy spot bids person propelled the terms higher, with yesterday’s BTC ETF inflows being a important factor. Inflows amounted to $773.4 million, with BlackRock contributing $626.5 million, Fidelity $133.9 million, Bitwise $9.2 million, and ARK Invest $3.8 million. Over the past 3 days, US spot Bitcoin ETFs person purchased a staggering $1.856 cardinal worthy of Bitcoin.

Good morning,

Yesterday’s Bitcoin ETF flows were affirmative for $773.4 million.

Blackrock did $626.5 million, Fidelity $133.9 million. (BTC the mini-ETF is inactive missing data)

Price dilatory climbing higher from $92K up to $97k now.
Shitcoins are getting slaughtered.

source:… pic.twitter.com/WMYIj7WiYj

— WhalePanda (@WhalePanda) November 21, 2024

The full nett plus worth of US Bitcoin spot ETFs has exceeded $100 billion. Twelve Bitcoin ETFs, including those from BlackRock and Fidelity, were issued successful January and person reached this milestone successful conscionable 10 months.

At property time, BTC traded astatine $96,920.