Bitcoin Reaches Historic High Amid Rising ETF Activity

The price of Bitcoin has reached a new all-time high, surpassing $94,000 per Bitcoin, a surge of 150% compared to the same period last year. This uptick occurred subsequent to BlackRock‘s spot Bitcoin ETF, which displayed «unheard» trading volumes on its initial day of options trading, sparking significant market activity.

Bloomberg Intelligence analyst James Seyffart reported on X that the initial trading day for the ETF witnessed a final tally just shy of $1.9 billion in notional exposure, facilitated through 354,000 contracts. Seyffart noted, «These options were almost certainly part of the move to the new Bitcoin all-time highs today.»

Bitcoin spot ETFs have rapidly emerged as some of the swiftest growing ETFs since their introduction in January, with BlackRock’s $42 billion Bitcoin fund leading the surge. Fellow Bloomberg Intelligence analyst Eric Balchunas remarked, «$1.9 billion is unheard of» for a first day of trading. Balchunas had earlier communicated to Yahoo Finance that Bitcoin might be approaching a critical «tipping point» in its price trajectory.

Balchunas suggested that this tipping point could lead financial advisers to shift their strategies, pondering, «I should have it to avoid getting fired» as opposed to «I don’t want to buy it and get my client mad for having some dumb Bitcoin ETF,» anticipating that such a shift might drive wider mainstream adoption of cryptocurrency.

Analysts at Bernstein brokerage have projected that this potential tipping point could drive Bitcoin’s price to $200,000 by 2025. A note from analysts led by Gautam Chhugani, observed by The Block, stated, «We are entering a stage, where we expect intrigue will turn to pain for the Bitcoin bears. Bitcoin to $100,000 seems around the corner and our $200,000 Bitcoin target [by the end of] 2025 now looks not as delusional.»