Bitcoin Surges Past $98,000 Amid Speculations of a Trump Presidency

On Thursday, Bitcoin breached the $98,000 mark for the first time, as speculations of a potential second term for Donald Trump fueled investor optimism. According to Coin Metrics, Bitcoin rose above $98,367 earlier in the day before settling at $97,541.61, marking a 3% increase. Analysts attribute the surge to Trump’s perceived favorable stance towards cryptocurrency, which could include more supportive regulations and discussions of a national strategic Bitcoin reserve.

In related market moves, cryptocurrency exchange shares advanced by 2%, while a Bitcoin proxy firm saw its stocks increase by 13%. Mining stocks also gained, with a particular stock jumping 9%. The rise in Bitcoin’s price was further triggered by increased funding rates and open interest in futures markets in Asia, alongside a drop in spot market premiums, as reported by CryptoQuant.

Market excitement was particularly driven by the launch of options trading for spot Bitcoin ETFs earlier this week, spearheaded by BlackRock’s iShares Bitcoin Trust ETF. Other ETFs including Grayscale Bitcoin Trust and Bitwise Bitcoin ETF Trust also began trading options, with unprecedented volumes recorded.

Sector experts anticipate Bitcoin reaching its psychological threshold of $100,000 soon, which has historically led either to consolidation periods or continued price increase as investor activity intensifies. Rob Ginsberg, an analyst from Wolfe Research, noted the significance of breaking through previous consolidation phases.

The market’s optimism also stems from Thomas Trump‘s potential policy adjustments, which might encompass larger budget deficits and shifts in the international role of the U.S. dollar – trends perceived to positively influence Bitcoin prices. Additionally, MicroStrategy has prominently increased their Bitcoin holdings to around 331,200 coins, worth approximately $16.5 billion.

On the political front, President-elect Donald Trump has expressed intentions to appoint Howard Lutnick, CEO of Cantor Fitzgerald and a crypto advocate, to head the Department of Commerce. This move is seen as part of a broader strategy to bolster the digital asset industry, possibly entailing a unique White House role focused on cryptocurrency policy.

Consequently, the cryptocurrency sector is anticipating Trump’s nominee choices for the Securities and Exchange Commission and the Commodity Futures Trading Commission, as these appointments could significantly influence market dynamics. In the meantime, Ethereum also showed notable gains, nearing $3,350 after surging nearly 9% in just 24 hours.