Cryptocurrency Bitcoin Surged to Another Life-Time High of $95,000 on Thursday

Since Trump's triumph in the November 5 US Presidential election, the broader crypto market has added more than $800 billion in value

Cryptocurrency Bitcoin hit another all-time high on Thursday, continuing to benefit from investors’ optimism following Donald Trump’s victory in the 2024 US Presidential election and his expected push for measures to ease regulation of the coin.

In early Asian trade on Thursday, Bitcoin, the world’s largest cryptocurrency, reached $95,004.50, with observers expecting it to hit $100,000 soon.

Bitcoin was last trading at $94,375.79, up 1.5 percent for the day, according to Coin Metrics.

5 key reasons for Bitcoin surge

The broader crypto market has gained more than $800 billion in value since Trump's triumph in the November 5 US Presidential election, according to data from CoinGecko.

Several key developments in the cryptocurrency space have contributed to the record-breaking climb. Let's examine them:

1 - Options trading for BlackRock's iShares Bitcoin Trust ETF

Options trading for BlackRock's (BLK) iShares Bitcoin Trust ETF (IBIT) began on the Nasdaq earlier this week, boosting market sentiment.

According to QCP Capital, the initial trading session had a strong call-to-put ratio of 4.4:1, indicating bullish investor interest.

During its debut, the product saw 354,000 contracts traded and $1.9 billion in notional exposure, highlighting the growing institutional interest in Bitcoin.

2 - More options to launch soon

More options for Grayscale and Bitwise bitcoin ETFs are expected to launch in the coming days, which could further bolster investor sentiment.

3 - Rumors of Trump's Bakkt acquisition

Market sentiment has also been lifted by rumors of Trump's Media and Technology Group (DJT), which operates Truth Social and has a 53 percent stake in Trump, acquiring Bakkt, a crypto trading platform.

The rumors have sparked anticipation of a potentially favorable environment for cryptocurrencies under Trump's influence.

4 - Trump's cryptocurrency pledge

Once a skeptic of digital assets, Trump shifted his stance and pledged during his campaign to make the US "the bitcoin and cryptocurrency capital of the world" and to put Elon Musk in charge of a broad audit of government waste.

Investors are also optimistic that Trump's support for cryptocurrencies, coupled with backing from a crypto-friendly Congress, will lead to policies that benefit the asset class.

5 - Eyes on Trump's upcoming appointments

Traders are also keeping an eye on Trump's upcoming appointments for Treasury Secretary and SEC chair, anticipating a crypto-friendly regulatory framework and a potential national bitcoin reserve.

Analysts are also watching Nvidia's earnings report, which is due later on Thursday, as movements in risky assets could further influence bitcoin's trajectory.

Bitcoin eyes $100,000 mark

There is also much speculation on whether Bitcoin will cross the $100,000-mark, a psychological level that proponents see as validating its role as a store of value.

“While the path to $100,000 may not be smooth, demand appears insatiable,” a report by ToI quoted Tony Sycamore, Market Analyst at IG Australia Pty.

With inputs from agencies