Key Reasons Behind The Rally
Bitcoin surged to $97,852 on Binance, setting a new all-time high. The cryptocurrency is up 5% in the past 24 hours and is up an impressive 43% in the past 16 days since November 5. The momentum shows no signs of slowing down as BTC price continues to rise steadily. Several key factors driving this extraordinary rally:
#1 US Strategic Bitcoin Reserve Trade
Market sentiment has changed significantly following Donald Trump’s victory in the US presidential election. The initial “trump tradeDue to speculation that President-elect Trump may establish a Strategic Bitcoin Reserve (SBR), the “US Bitcoin Reserve Exchange” has evolved into the “US Bitcoin Reserve Exchange.” This was a promise he made at the Bitcoin 2024 conference in Nashville.
Industry insiders including Bitcoin CEO and Trump campaign adviser David Bailey and Satoshi Action Fund CEO Dennis Porter said, hint The possibility of SBR becoming a reality. Both men urged establishing the SBR through an executive order within Trump’s first 100 days as president. They warn that the United States could fall behind in the global race to accumulate Bitcoin.
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Bailey disclose On November 9, “At least one nation-state has been actively acquiring Bitcoin and is now a top 5 holder. Hopefully we’ll hear from them soon.” He highlighted his with an emoji Certainty, showing that his information is based on knowledge rather than guesswork. Mike Novogratz, CEO of Galaxy Digital Confirmed In a recent interview with Bloomberg TV, he said, “Countries are already buying Bitcoin in large quantities.”
The “U.S. Bitcoin Reserve Trading” is expected to last until Trump’s inauguration on January 20. It remains to be seen whether Trump will follow through on his promise to potentially transfer the more than 208,000 Bitcoins seized by law enforcement into reserves or even adopt Senator Cynthia Lummis. The Bitcoin Bill proposes to purchase 1 million Bitcoins over five years.
#2 Possible Appointment of a “Cryptocurrency Czar”
Leaks on Wednesday suggested that President-elect Trump’s team is discussing creating a new White House position dedicated to Bitcoin and cryptocurrency policy. Sources familiar with the transition said candidates for the position are being reviewed.
If established, this would be the first-ever White House position dedicated to Bitcoin and cryptocurrencies, highlighting the influence the nascent industry will wield in the incoming administration. It’s unclear whether the role is a senior White House staff position or a “crypto czar” responsible for overseeing federal government policy and regulation. Crypto industry advocates are pushing for the role to be directly tied to Trump — which is big news for the entire industry.
#3 Launch of Bitcoin ETF Options
The launch of Bitcoin ETF options has had a significant impact on the market. BlackRock’s iShares BTC Trust (IBIT) ETF options launched on November 19, 2024, with an unprecedented notional exposure of $1.9 billion. first day trading. Bloomberg ETF expert James Seyffart said: “The final count for IBIT’s first day options was just under $1.9 billion in notional exposure via 354,000 contracts traded. 289k were calls and 65k were puts. The ratio was 4.4:1. These picks are almost certainly part of Bitcoin’s rise to new all-time highs today.”
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Jeff Park, Head of Alpha Strategy at Bitwise Invest, recently stated Highlight The game-changing nature of Bitcoin ETF options:
With the SEC approving the listing and trading of Bitcoin ETF options, we are about to witness the most extraordinary “volatility” rise in financial history. For the first time, Bitcoin’s nominal value will be “partially stored” through ETF options. This marks the most significant advancement possible for the cryptocurrency market.
Park explained that Bitcoin ETF options provide a regulated market where the Options Clearing Corporation (OCC) protects clearing members from counterparty risk, allowing Bitcoin’s aggregate notional exposure to grow exponentially. He emphasized that this could have an explosive recursive impact on the Bitcoin price due to its unique volatility characteristics and “volatility smile.”
If you were to read one book today to understand the game-changing nature of Bitcoin ETF options, read (and bookmark) this one for 2025 – it’s going to be crazy. pic.twitter.com/On2DmUsbHX
— Jeff Parker (@dgt10011) September 20, 2024
#4 Spot Markets and Bitcoin ETFs Surge
The recent rally has also been driven by active activity in the spot market. Heavy spot buying is driving prices higher, with yesterday’s BTC ETF inflows being a key factor. Fund inflows were $773.4 million, with BlackRock contributing $626.5 million, Fidelity $133.9 million, Bitwise $9.2 million, and ARK Invest $3.8 million. In the past three days, the U.S. Spot Bitcoin ETF purchased $1.856 billion worth of Bitcoin.
Good morning,
Yesterday’s Bitcoin ETF flows were positive, reaching $773.4 million.
Blackrock had revenue of $626.5 million and Fidelity had revenue of $133.9 million. (BTC mini ETF still missing data)
The price has slowly climbed from $92,000 to now $97,000.
Garbage coins are being slaughtered.source:… pic.twitter.com/WMYIj7WiYj
— WhalePanda (@WhalePanda) November 21, 2024
The total net asset value of U.S. Bitcoin spot ETFs has exceeded $100 billion. Twelve Bitcoin ETFs, including those from BlackRock and Fidelity, were launched in January and have reached this milestone in just 10 months.
At press time, BTC was trading at $96,920.
Featured image created using DALL.E, chart from TradingView.com
