Bitcoin Sets New Record Ahead of US Trading Session

Bitcoin has once again surpassed the $94,000 level as it approached U.S. trading hours, reaching a new record of $94,692, bringing it a step closer to the psychological milestone of $100,000.

This sudden surge began particularly after reports emerged that Trump Media and Technology Group is in talks to acquire the crypto trading firm Bakkt. The potential investment in this direction by Trump’s social media company has led to expectations of a crypto-friendly administration in the market. Stéphane Ouellette, CEO of the crypto trading firm FRNT Financial, indicated that Trump’s personal interest in the crypto space has heightened expectations for this asset class to become a priority. Additionally, according to reports from the Wall Street Journal, it was indicated that Trump has had private discussions with cryptocurrency exchange CEO Brian Armstrong. Investors continue to maintain their confidence in Trump’s promises of support for crypto assets and a less restrictive regulatory framework.

Other developments triggering Bitcoin's rise include the robust start of options for BlackRock's Nasdaq-listed iShares Bitcoin Trust ETF (IBIT) while Bitcoin's price continues to surpass the $94,000 mark. The intense interest in IBIT options has been positively received by market analysts and is viewed as a significant step toward Bitcoin becoming a mainstream asset class. The successful launch of these options may attract new groups of investors to the market and provide diversity in trading strategies.

These favorable market trends have also pushed the total cryptocurrency market cap above $3 trillion, achieving a historic level. Since Trump's electoral victory, spot Bitcoin exchange-traded products in the U.S. have attracted approximately $4.2 billion in inflows, accounting for 15% of total inflows.