Bitcoin Surges Past $90,000 as Trump’s Second Term Spurs Crypto Rally

Bitcoin surges $90,000 on Wednesday, marking an unprecedented milestone. This surge is largely attributed to investor optimism about a potential cryptocurrency revival during Donald Trump’s anticipated second term. The rise in bitcoin’s price by 30% since Election Day is driven by Trump’s crypto-friendly stance, as well as key congressional victories backed by crypto-supportive PACs.

Election of Pro-Crypto President Spurs Market Momentum

The election of a pro-crypto president has injected new life into the cryptocurrency market. As the market anticipates regulatory rollbacks and favorable policies under Trump, bitcoin’s value continues to climb. Trump’s advocacy for a national bitcoin reserve and his promise to replace SEC Chair Gary Gensler, who has faced backlash from the crypto industry, have fueled investor confidence.

Bitcoin’s Path to $100,000 Traders Bet Big

Traders speculate that bitcoin will surpass $100,000 before the year ends. About $850 million in options contracts bet on this milestone. These contracts will expire on December 27. Additionally, bitcoin derivative activity grows, with the market for leveraged products reaching multi-month highs.

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The Role of Bitcoin ETFs and Federal Reserve Policies

Two significant factors contribute to bitcoin’s surge: new exchange-traded funds (ETFs) and recent interest rate cuts by the Federal Reserve. The SEC-approved bitcoin ETFs, launched in January, allow individual investors to gain exposure to bitcoin. Currently, $94 billion is invested across 11 ETFs. BlackRock’s iShares Bitcoin Trust has become the largest bitcoin fund. It now manages nearly $42 billion in assets.

Crypto-Related Stocks and Tokens Also Soar

In tandem with bitcoin’s rally, crypto-related stocks have experienced impressive gains. Coinbase shares rose 24% last week, while MicroStrategy, transformed by bitcoin advocate Michael Saylor, saw a 43% increase. The company now holds around 279,420 bitcoins, valued at approximately $26 billion.

Resurgence in Crypto Market After 2022’s Collapse

The crypto market’s revival is notable, especially after the downturn in 2022. Back then, major entities collapsed, like TerraUSD and FTX. This caused bitcoin to plummet to near $16,000. However, individual interest is now rekindling. Google searches for bitcoin have returned to pre-crash levels, while alternative tokens like Dogecoin and Solana show significant gains.

Institutional Investors Join the Bitcoin Rush

Institutional interest in bitcoin has also grown, with the Chicago Mercantile Exchange reaching a record 35,973 active bitcoin futures contracts. This represents a notional value of $13.9 billion, signaling strong demand from institutional investors eager to capitalize on the cryptocurrency market’s rapid growth.

Bitcoin surges $90,000 on Wednesday is optimism over Trump’s crypto-friendly stance, according to wall street journal subscription.