Bitcoin is once again approaching its historical peak, underscoring the growing acceptance of digital assets in the U.S. under the leadership of crypto-supporter Donald Trump. Recently, Trump Media & Technology Group (DJT) engaged in talks to acquire the digital asset platform Bakkt (BKKT, Financial), fueling a surge in both companies' stock prices.
Additional developments include Nasdaq's plans to list options for the $43 billion iShares Bitcoin Trust as soon as Tuesday, and Goldman Sachs' initiative to spin off its digital asset platform. These moves signal deeper integration of cryptocurrencies and blockchain technology into the financial system.
Bitcoin recently rose to a high of $92,606 in the U.S., currently trading at $91,045, approximately $2,400 below last week's record. Since Trump's election win on November 5, Bitcoin has surged 36%. Trump's campaign promises include making America the global crypto hub by establishing a crypto-friendly regulatory framework and a strategic Bitcoin reserve. However, the timeline and feasibility of these promises remain uncertain, sparking debates about Bitcoin's future performance.
According to Deribit exchange data, the highest concentration of open interest in the options market is bets on Bitcoin reaching $100,000. Technical analyst Katie Stockton from Fairlead Strategies LLC suggests Bitcoin could rise to around $98,100 in the coming weeks, while IG Australia's Tony Sycamore is inclined to buy on a pullback to $80,000.
The iShares Bitcoin Trust, managed by BlackRock, is the world's largest Bitcoin portfolio. Its options could attract new investments into the crypto ecosystem by broadening trading opportunities. Post-election, the fund saw net inflows of around $4 billion, contributing to the current optimism in the crypto market.
Despite the 2022 market crash that exposed fraud and led to the collapse of several platforms, confidence in cryptocurrencies is rebounding. In a recent legal development, a woman known for her alter ego "Razzlekhan" was sentenced to 18 months in prison for laundering stolen crypto from Bitfinex, highlighting the ongoing illicit challenges in the crypto world.
Trump's stance on cryptocurrencies has evolved, particularly after substantial investments by digital asset firms during his campaign. Bloomberg Intelligence senior government analyst Nathan Dean indicated that the likelihood of a comprehensive U.S. cryptocurrency legislation by 2025 has increased to about 70%.
