"Trump Trade" Rally Continues: Bitcoin Hits $97,000

At the beginning of this month, the momentum of Bitcoin (BTC), catalyzed by the Republican victory in the U.S. elections, continues to advance at full speed without showing any signs of slowing down, pushing the asset above $97,000 for the first time early in the day.

BTC, which crossed the $97,000 mark in the early hours, is only 3% away from the $100,000 milestone level, which would elevate its market value above $2 trillion. The cryptocurrency has gained approximately 30% in value over the past 14 days, fueled by the anticipation of a crypto-friendly government in the U.S. and a potential interest rate cut by the Federal Reserve that could enhance traders' risk appetite. The rally, dubbed the "Trump trade" by traders, has affected all asset classes from stocks to bond yields since Donald Trump’s election victory.

BlackRock's newly launched Bitcoin ETF options (IBIT) continue to serve as a significant driving force in this bull run. The IBIT options reached a trading volume of $2 billion on their very first day, signaling a change in market structure.

In a Telegram note shared early in the day, Singapore-based QCP Capital stated: "BlackRock's BTC spot ETF (IBIT) had a strong start, achieving a trading ratio of 4.4:1 in the first hours and reaching 73,000 contracts. This development has placed IBIT among the top 20 most active non-index options and highlighted the growing institutional interest in Bitcoin."

"It is highly likely that this market reaction will attract new groups of investors and help reduce both volatility and downside risk. Additionally, Bitcoin's position in mainstream markets is expected to solidify."

Banks and traditional financial analysts have reported that with the Republican victory, they expect Bitcoin to reach high price levels such as $200,000 in the coming months.