Bitcoin Surges Beyond $94,000, Setting New Record High
Bitcoin has surpassed the $94,000 mark, setting a new record. Reports that Donald Trump, the elected President of the United States, is considering acquiring the cryptocurrency trading platform Bakkt through his media and technology company, Trump Media, are seen as one of the key factors behind this surge.
The expectation of a pro-crypto administration under Trump's second term has contributed to the rise in Bitcoin's value. After reaching $94,078, doubling its price over the course of 2024, Bitcoin retreated to $92,000 during Asian trading hours. The launch of BlackRock's Bitcoin ETF options has also been another factor supporting the increase in Bitcoin's price. Edul Patel, CEO of Mudrex, noted that BlackRock’s options generated a trading volume of $1.9 billion on their first day, suggesting this has fueled Bitcoin's price rally. However, profit-taking in the markets has pulled Bitcoin down to the $92,000 level, while increasing tensions between Ukraine and Russia have made investors cautious. Currently, Bitcoin faces resistance at $94,600 and finds strong support at $90,400.
According to a report by The Financial Times, Trump Media and Technology Group is in talks to acquire Bakkt, supported by the Intercontinental Exchange, which owns the NYSE, entirely in stock. Market analyst Tony Sycamore commented that this news, combined with announcements of Trump’s Bakkt deal, has contributed to Bitcoin reaching record levels. The first trading day of BlackRock's Bitcoin ETF options on Nasdaq also supported Bitcoin's ascent.
Since Trump's victory in the 2024 U.S. Presidential election, optimism surrounding cryptocurrencies has surged, pushing the global market capitalization of crypto assets over $3 trillion. Chris Weston stated at Pepperstone that there is real buying pressure on Bitcoin and that the next price increase will prompt even those who haven’t previously invested to take action.
Some experts believe Bitcoin's price could exceed $100,000. The launch of BlackRock's Bitcoin ETF options has generated significant excitement among institutional investors, which could further elevate Bitcoin's price. Investor Kevin O’Leary mentioned that Bitcoin could surpass $100,000 before the year ends.
It is suggested that if Bitcoin reaches the $100,000 level, a "short squeeze" could occur. Recent data indicates that if this level is breached, approximately $5 billion in Bitcoin shorts would need to be covered, further pushing the price upwards. Additionally, it is expected that altcoins such as Ethereum, Dogecoin, and Solana will also participate in this upward trend.
With gold ETFs showing weakness against Bitcoin, it is noted that more funds could flow into cryptocurrencies. The growing interest in the crypto market has led to a global crypto market cap of $3.2 trillion, marking the beginning of a new era for crypto assets.