With a recent surge to $97,852 on Binance, Bitcoin has hit a new record high. The cryptocurrency has climbed an astounding 43% in the sixteen days following November 5, with a 5% increase in the latest day alone. The relentless increase of the Bitcoin price shows no signs of decreasing pace. Quite a few important things are propelling this unprecedented upswing:
Trade in US-Structured Bitcoin Reserves
There has been a dramatic change in market mood since Donald Trump was elected US president. The original "Trump trade" has transformed into the "US Bitcoin Reserve trade," driven by the rumors that the next president may create a Strategic Bitcoin Reserve (SBR). This is in continuation with his promise made at the Bitcoin 2024 in Nashville conference.
Prominent figures in the industry, including as BTC Inc. CEO and Trump campaign adviser David Bailey and Satoshi Act Fund CEO Dennis Porter, have dropped hints that the SBR may materialize. They have both pushed for an executive order to create the SBR within the first 100 days of Trump's administration. Fearing the US may lag behind other countries in the race to amass Bitcoin, they issue a warning.
"There is at least one nation-state that has been actively acquiring Bitcoin and is now a top 5 holder," Bailey said on November 9th. We are eagerly awaiting their response. He used a meme to underscore his assurance, showing that his information is not based on conjecture but on expertise. Galaxy Digital CEO Mike Novogratz recently told Bloomberg TV that "countries are already buying BTC in huge volumes."
It is anticipated that the "US Bitcoin Reserve Trade" would last until January 20, the day of Trump's inauguration. Who knows whether Trump would really implement his plans to put more than 208,000 BTC into the reserve or if he will support Senator Cynthia Lummis' Bitcoin Act, which would buy 1 million BTC over five years.
Possibility of Appointing a "Crypto Czar"
According to a Wednesday leak, the transition team for President-elect Trump is reportedly considering the creation of a new job inside the White House whose only responsibility would be Bitcoin and crypto policy. Candidates are now being evaluated for this position, according to sources familiar with the transition process.
If created, the job would highlight the growing prominence of the cryptocurrency business under the next administration by becoming the first of its kind in the White House. The position's exact nature—a senior White House staffer or a "crypto czar" in charge of federal crypto policy and regulation—remains unknown. The fact that crypto industry supporters are trying to get this position to have a direct connection to Trump is huge news for the whole sector.
Bitcoin Exchange-Traded Funds Debut
There has been a dramatic shift in the market with the advent of Bitcoin ETF choices. On their first day of trading, BlackRock's iShares BTC Trust (IBIT) ETF options, which were released on November 19, 2024, saw a notional exposure of $1.9 billion, which is unparalleled. According to Bloomberg ETF specialist James Seyffart, "Just shy of $1.9 billion in notional exposure traded via 354k contracts" was the final count of IBIT's first day of options. 289k included calls and 65k involved puts. That works out to 4.4:1. Today, Bitcoin hit fresh all-time highs, and these options were likely a factor in that.
The SEC's green light for Bitcoin ETF options listing and trading puts the world on the cusp of the greatest upward "vol" of "vol" in financial history. A first will be the use of exchange-traded fund options to "fractionally bank" the theoretical value of Bitcoin. In terms of the cryptocurrency market, this is the biggest leap forward that could be imagined.
In a controlled market where the Options Clearing Corporation (OCC) safeguards clearing members from counterparty concerns, Bitcoin ETF options, as Park elucidated, enable synthetic notional exposure to the cryptocurrency to increase at an exponential rate. Because of Bitcoin's one-of-a-kind volatility features and the "volatility smile," he said, this may cause its price to spiral out of control.
Bitcoin ETF and Spot Market Volumes Soar
Significant activity in the spot market has also spurred the recent increase. Prompting heavy spot buys, yesterday's BTC ETF inflows were a key component that drove the price higher. Contributions of $773.4 million were made by BlackRock, Fidelity, Bitwise, and ARK Invest, with the former providing $626.5 million, the latter $133.9 million, and the former $3.8 million. In only three days, exchange-traded funds (ETFs) in the United States have bought a remarkable $1.856 billion worth of Bitcoin.
Investments in Bitcoin exchange-traded funds (ETFs) in the United States now surpass $100 billion. In the 10 months since their launch in January, twelve Bitcoin ETFs—including those from BlackRock and Fidelity—have accomplished this feat.
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