Bitcoin ($BTC) reached an unprecedented milestone of $98,312, as per CoinGecko, early on Thursday, setting a new record for the leading cryptocurrency.
This landmark achievement underscores a month of exceptional growth, with Bitcoin surging by over 46% in the last 30 days and more than doubling in value this year.
Experts are pointing to significant developments, including the introduction of options on spot Bitcoin exchange-traded funds (ETFs) and a changing political climate, as key drivers behind this rally.
Bitcoin ETFs and its impact
The recent approval of options for Bitcoin exchange-traded funds (ETFs) brought fresh energy to the cryptocurrency market.
BlackRock’s iShares Bitcoin Trust (IBIT) debuted its options trading on Tuesday, followed by offerings from Bitwise and GrayScale the next day. The CEO of Anchorage Digital, Nathan McCauley, remarked:
“With the approval of options on Bitcoin ETFs, we’re not just seeing the maturation of the crypto ETF market—we’re watching Bitcoin cement its place alongside stocks, bonds, and commodities as a mainstream institutional investment.”
The market’s response has been significant. On its first day, IBIT options recorded $1.9 billion in notional exposure through 354,000 contracts, with a notable 4.4:1 ratio of calls to puts, according to Bloomberg’s ETF analyst, James Seyffart.
This surge in trading activity coincided with Bitcoin hitting new all-time highs, suggesting a strong link between the ETF developments and the cryptocurrency’s price performance.
Politics and whale activity
Bitcoin’s momentum received a boost earlier this month when pro-crypto Donald Trump defeated Vice President Kamala Harris in the US presidential election.
Reports indicate that Trump’s team may create a dedicated role for crypto policy within the White House, a potential first in US history.
Meanwhile, Bitcoin “whales”—large holders of the cryptocurrency—have significantly influenced its upward trajectory.
Over the past month, these investors have added 56,397 $BTC, valued at approximately $5.42 billion. Whale activity is often viewed as a bullish indicator, signalling confidence in the asset. The CEO of Tides.Network, Chandra Duggirala, noted that, “We are not seeing strong FOMO from wealth managers and retail has just started paying attention. So, the trend is still young”.
Additionally, the Long-Term Holder Net Unrealised Profit/Loss (LTH NUPL) metric remains below the “euphoria” threshold.
Historically, this signals potential for further market growth as long-term investors maintain confidence in Bitcoin’s continued rise.
The path to $100,000
Bitcoin’s current rally has brought it tantalisingly close to the $100,000 mark. Earlier today, the cryptocurrency reached an intraday high of $98,312, reflecting a 6.7% gain in just 24 hours.
To achieve the coveted $100,000 milestone, analysts highlight the need to flip $97,864 from resistance into a support level. Whale accumulation and unwavering belief from long-term holders could also provide the necessary momentum.
Polymarket, a prediction platform, estimates a 72% chance of Bitcoin hitting $100,000 in November. Some bettors even see the cryptocurrency reaching $105,000 this month.
Standard Chartered Bank has forecast that Bitcoin could reach $100,000 by the end of 2024, bolstered by increasing adoption of blockchain technology across industries and growing recognition of Bitcoin’s scarcity and value.
Technical indicators emanated a continued bullish momentum for the coin, as per TradingView. The Moving Average was moved northbound, confirming the same. Green histograms were also seen on the Moving Average Convergence/Divergence (MACD) indicator following its bullish crossover of lines.
However, the journey is not without risks. The cryptocurrency market remains highly volatile, and any significant price correction could dampen optimism.
Nonetheless, Bitcoin’s ascent continues to solidify its status as a leading asset in a rapidly evolving digital economy.
As it edges closer to $100,000, Bitcoin’s trajectory reflects both its enduring appeal and its transformative potential in the global financial landscape.
