Bitcoin has returned near its all-time high, and this series of developments highlights the increasing acceptance of the digital asset industry in the U.S. under the leadership of cryptocurrency supporter Trump.
Earlier market news stated that Trump Media Technology (DJT.US) is negotiating to acquire the digital asset platform Bakkt (BKKT.US), which has led to a surge in the stock prices of both companies.
Other developments include Nasdaq's plan to list options for the $43 billion iShares Bitcoin Trust as early as Tuesday, as well as Goldman Sachs' push to spin off its digital asset platform, both of which are signs that cryptocurrencies and their underlying blockchain technology are becoming more entrenched in the financial system.
Bitcoin surged to $92,606 in the U.S. on Monday, and as of this writing, the price is $91,045, about $2,400 lower than the record set last week. Since Trump won the election on November 5, this largest digital asset has risen 36%. Trump's campaign agenda includes making the U.S. the world's crypto capital.
A large influx of funds
Chris Weston, head of research at Pepperstone Group, wrote in a report: 'The cryptocurrency market is active again,' adding that Trump Media's move on Bakkt is 'another positive piece of news boosting market sentiment.'
Trump promised to establish a favorable regulatory framework for digital assets in the U.S. and set up a strategic Bitcoin reserve. However, it remains uncertain when his promises will be realized and the feasibility of the Bitcoin reserve.
These issues have sparked debate about whether Bitcoin and cryptocurrencies can continue to rise. According to data from the Deribit Exchange, the highest concentration of open interest (or open contracts) in the options market is bets on Bitcoin reaching $100,000.
Katie Stockton, a technical analyst at Fairlead Strategies LLC, stated that some signals from chart patterns indicate that Bitcoin could rise to around $98,100 in the coming weeks. Tony Sycamore, a market analyst at IG Australia Pty, expressed a preference to buy Bitcoin when it retraces to $80,000.
ETF options
BlackRock's iShares Bitcoin Trust is the largest Bitcoin portfolio in the world. The fund's options may attract new investments into the crypto ecosystem by expanding trading possibilities. iShares products are among the 12 spot Bitcoin exchange-traded funds in the U.S., which attracted about $4 billion in net inflows after election day.
The current optimistic sentiment in the cryptocurrency space has faded memories of the painful market crash in 2022, which exposed fraud and other risky behaviors, leading to the collapse of platforms including SBF's FTX exchange.
On Monday, a woman who referred to herself as 'the Wall Street crocodile' and 'Razzlekhan' in a rap video was sentenced to 18 months in prison for helping her hacker husband launder cryptocurrency stolen from the Bitfinex exchange, revealing this twisted history. The stolen Bitcoins are currently worth billions of dollars.
Trump was once skeptical about cryptocurrencies, but changed his stance after digital asset companies invested heavily during the campaign to protect their interests. The elected president now has his own cryptocurrency project. Nathan Dean, a senior government analyst at Bloomberg Intelligence, wrote in a report that the likelihood of the U.S. fully passing cryptocurrency legislation by 2025 has risen to about 70%.
