Bitcoin (BTC), the most popular cryptocurrency, hit an all-time record high of $84,000 Monday. This was due to increased flows into the digital asset markets and the expectation of more gains for the remainder of the year.
Bitcoin’s price has risen by 23% over the last week, and 5.5% over the last 24 hour period. This is due to Donald Trump winning the US presidential elections over Democrat Kamala Harri.
Optimism Grows For $100,000 Bitcoin
Bloomberg reports Option traders speculate that the $100,000 level could be achieved before the year ends.
Deribit’s options traders are especially active. They place large wagers to see Bitcoin reach the milestone. The value of a $100 call option that expires on December 27 is expected to increase by 30%.
Nick Forster commented on the Derive protocol, which is a decentralized financial protocol that allows for option trading. “We’re witnessing some significant movements in the wake of the US election.”
As of Monday morning in London, there was approximately 9,635 Bitcoin—valued at around $780 million—in open interest tied to bets on Bitcoin hitting $100,000 by the December expiration.
Bloomberg reports that the trade has the highest capital risk of any trade with an expiry of this date. Deribit estimates a 18.6% success rate.
The Uptrend is Linked to Anticipated Regulation Changes under Trump
Le Shi, the managing director of the Hong Kong-based market maker Auros, said that Trump’s election promises were responsible for the recent uptrend on the market.
These include making Bitcoin a strategic reserve asset for the US, firing the chairman of the US Securities and Exchange Commission (SEC) on his first day in office and introducing a clearer regulatory framework to support the market’s growth.
Shi is of the opinion that a combination favorable market conditions and growing interest from institutions, as well as a regulatory climate supportive under Trump’s administration, could provide a backdrop conducive to further price appreciation.
BTC trades at $84,122 as of the date this post was published.
Featured Image from DALL E, Chart by TradingView.com
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Source: www.newsbtc.com
