TLDR
- Bitcoin surpasses $97,000, reaching all-time highs and approaching $100,000 milestone
- Rally attributed to Republican win and pro-crypto government stance
- BlackRock’s IBIT options launch successful with $2 billion first-day milestone
- Profit-taking occurring at current levels, with average November sellers at 60% profit
- RSI indicates potential for continued upward momentum, currently at 74
Bitcoin reached new heights on Thursday, trading above $97,500 in early Asian hours as institutional adoption and political developments continue to fuel its upward trajectory.
The world’s largest cryptocurrency has gained approximately 30% over the past two weeks, pushing its value to unprecedented levels. The surge comes as traders and investors respond to recent political shifts and monetary policy changes in the United States.
Thursday’s rally brought Bitcoin within striking distance of the $100,000 mark, a psychological barrier that would result in a $2 trillion market capitalization. Trading volumes remain robust across major exchanges, indicating strong market participation.
The recent momentum has been partially attributed to what traders are calling the “Trump trade,” following the Republican victory earlier this month. Market participants have shown increased risk appetite across various asset classes, including stocks and bonds.
BlackRock’s recently launched IBIT options have emerged as a key driver of institutional interest. The options market for the spot ETF achieved remarkable success on its first day of trading, reaching a $2 billion milestone. Trading activity showed a notably bullish sentiment, with a call-to-put ratio of 4.4:1 within the first hour of launch.
Market data indicates that current sellers are primarily taking profits, with November sellers averaging a 60% return on their investments. The average cost basis for these sellers stands at approximately $55,000, suggesting many early investors are capitalizing on the recent price appreciation.
The cryptocurrency’s technical indicators remain strong, with the Relative Strength Index (RSI) currently at 74. Historical patterns suggest there could be more room for growth, as previous bull markets have seen RSI values exceed 80.
Political developments continue to shape market sentiment. The Trump transition team is reportedly considering Teresa Goody Guillén, currently a partner at BakerHostetler and co-lead of its blockchain team, as a potential SEC chair candidate, according to industry sources.
Traditional financial institutions have begun revising their price targets upward, with some analysts projecting values as high as $200,000 in the coming months. These projections factor in the potential impact of a pro-crypto regulatory environment under the new administration.
The two-year realized price, a metric tracking the value of coins based on their last on-chain movement, has shown sharp increases similar to patterns observed during previous bull markets in 2013, 2017, and 2020/21. This metric currently stands at $60,000.
Trading data shows sustained institutional interest, with professional traders maintaining bullish positions across various derivatives markets. The options market has particularly reflected this optimism, with increased activity in calls at strike prices above current levels.
Market liquidity has improved substantially, with bid-ask spreads tightening across major exchanges. This development suggests growing market maturity and increased participation from professional trading firms.
The rally has maintained momentum despite some profit-taking at current levels. Analysis of on-chain data reveals that long-term holders have begun realizing gains, though at a measured pace that hasn’t significantly impacted price momentum.
Regional trading volumes show particular strength in Asian markets, with sustained activity during Asian trading hours contributing to the upward price movement.
Technical analysis of market structure suggests strong support levels have formed around previous resistance points, potentially providing a foundation for further price appreciation.
The current market dynamics reflect a shift in Bitcoin’s position within the broader financial landscape, with increased integration into traditional investment portfolios and growing acceptance among institutional investors.
