Bitcoin surged to a record $94,000 in early trading on Wednesday and inched closer to the symbolic $100,000 mark after a year of sharp gains. It has hit a record all-time high above $94,000 for the first time.
The most popular and circulated cryptocurrency has soared 90% since August and doubled since January on the back of multiple factors, including rising institutional demand.
The current rally follows news that Donald Trump has nominated Howard Lutnick, CEO of Cantor Fitzgerald, as Commerce Secretary. Lutnick, a vocal supporter of Bitcoin, adds credibility to Trump’s pledge to position the U.S. as a hub for cryptocurrency adoption. His appointment has lifted investor confidence.
BlackRock’s iShares Bitcoin Trust is also grabbing headlines, with the ETF set to introduce options trading this week. Nasdaq’s Alison Hennessy confirmed plans to list the options, calling it “an exciting opportunity for market participants.” To be sure, options trading in Bitcoin ETFs will bring the liquidity. The introduction could mean a more stable Bitcoin price.
Meanwhile, Spot Bitcoin ETFs have attracted $27.7 billion in inflows this year, with BlackRock, Grayscale, and Fidelity leading the pack. Analysts expect further demand as these funds gain traction along with the rising price of Bitcoin.
At the same time, corporate interest in Bitcoin remains strong. MicroStrategy, already one of the largest institutional holders of Bitcoin, plans to raise additional capital to improve its position. Meanwhile, speculation is swirling that Trump’s social media company could acquire Bakkt, a crypto platform, as part of its broader blockchain ambitions. Bakkt is backed by NYSE-owner Intercontinental Exchange.
Last but not least, Bitcoin’s climb has also been fueled by the Federal Reserve’s softer stance on interest rates and a weakening U.S. dollar, which has slipped from a yearly high of 107 to around 106.
