Crypto Quill

Bitcoin has surged to new heights, nearing the coveted $100,000 mark following the recent U.S. election results, which saw Republicans, led by Donald Trump, secure a broad victory. The world’s largest cryptocurrency spiked to $99,027 on Thursday afternoon, setting another all-time high. As of late Thursday, Bitcoin held steady at approximately $98,000, marking an impressive 134% increase so far this year.

Bitcoin’s Impressive Rally

Bitcoin’s climb has captured the attention of analysts and investors alike, with some predicting that the digital currency could surpass $100,000 by the end of 2024. The surge is in part attributed to Trump’s victory, which has fueled optimism in various markets, including cryptocurrency. Joel Kruger, a market strategist at LMAX Group, commented on Bitcoin’s recent performance, stating that Bitcoin’s rise might continue into the final quarter of the year. Bitcoin is up 64% in Q4 alone, and Kruger noted that historically, Bitcoin has posted average returns of more than 80% in Q4 since 2013. This sets the stage for further growth, possibly pushing Bitcoin through the psychological $100,000 barrier and even surpassing $110,000 before year-end.

A Catalyst for Growth: Bitcoin ETF Launches

A key driver behind Bitcoin’s latest rally is the beginning of options trading for spot Bitcoin ETFs. On Tuesday, BlackRock launched its iShares Bitcoin Trust ETF (IBIT), and several other Bitcoin ETFs, including the Grayscale Bitcoin Trust (GBTC) and the ARK 21Shares Bitcoin ETF (ARKB), followed suit. These investment vehicles have spurred massive investor interest, leading to record trading volumes. According to Bloomberg, the iShares Bitcoin Trust saw nearly $1.9 billion in exposure, with a staggering 354,000 contracts traded on its first day, signaling strong confidence in Bitcoin’s future price trajectory.

In total, the launch of Bitcoin ETFs has brought in nearly $1.86 billion in inflows this week, with IBIT leading the charge. Since their launch in June, these ETFs have accumulated over $29 billion in inflows. However, the Grayscale Bitcoin Trust has seen a modest outflow of $20.25 million, reflecting a shift in investor preferences towards these newer spot Bitcoin ETFs.

Trump’s Support for Cryptocurrency

Along with the rally in Bitcoin prices, the cryptocurrency industry has benefitted from Trump’s promises to prioritize crypto during his upcoming term. Trump’s administration is reportedly planning to nominate Howard Lutnick, the CEO of Cantor Fitzgerald, to head the Department of Commerce. Lutnick, a vocal advocate for cryptocurrency, has deep ties to the digital asset world. His firm, Cantor Fitzgerald, serves as the custodian for Tether, one of the most widely used stablecoins, and has positioned itself as a leading investment bank in the space.

Lutnick’s appointment could signal significant regulatory changes for the crypto industry, as he is known for supporting Bitcoin and other cryptocurrencies. During a recent Bitcoin conference, Lutnick called Cantor Fitzgerald the “best investment bank for digital assets” and openly expressed his personal support for Bitcoin.

In addition to Lutnick’s potential appointment, Trump’s team is considering the creation of a new White House position focused exclusively on cryptocurrency policy. This new role would be the first of its kind, directly reporting to the president and ensuring that the U.S. government remains aligned with the rapidly evolving cryptocurrency industry. The Trump team is also considering key appointments to lead the Securities and Exchange Commission (SEC) and the Commodities and Exchange Futures Commission (CFTC), which are crucial regulatory bodies for the crypto space.

Trump’s outreach to the crypto industry includes discussions with Coinbase CEO Brian Armstrong, signaling a broader focus on fostering collaboration between the White House and major crypto stakeholders. This further enhances the optimism surrounding Bitcoin and other cryptocurrencies, as regulatory clarity and industry support are expected to improve under Trump’s leadership.

Looking Ahead

As Bitcoin continues to push towards $100,000, the market remains hopeful for continued growth, fueled by both political developments and institutional support. The introduction of Bitcoin ETFs, combined with Trump’s favorable stance towards the crypto industry, has set the stage for a potentially record-breaking year for Bitcoin and other digital assets.