The largest digital cryptocurrency asset Bitcoin, has crossed the $98,000 threshold for the first time on Thursday, overtaking Taiwan’s dollar to become the 12th biggest currency in the world.
The leading cryptocurrency was last reported trading up more than 3%, reaching $97,930. Major crypto-related stocks also saw gains, with Coinbase rising 3% in premarket trading and MicroStrategy, often regarded as a proxy for Bitcoin, surging by 11%.
Additionally, more than $88 million in short positions were liquidated in the past 24 hours, further propelling the cryptocurrency upward.
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The sharp rise in Bitcoin has been driven by several major developments in the cryptocurrency space, which includes the introduction of options trading for BlackRock’s Shares Bitcoin Trust and speculation surrounding Former US President Donald Trump’s social media company exploring a deal to acquire crypto trading firm Bakkt.
Reports reveal that Trump’s move to acquire Bakkt has raised expectations of a potentially favorable environment for cryptocurrencies under his influence. This news has led to renewed interest in Bitcoin as a financial asset, further driving its price upward.
Also, Bitcoin’s meteoric rise has been fueled by expectations of a Trump administration that could usher in favorable regulations for the crypto industry.
“Bitcoin continues its bullish streak creating a new all-time high of $95,000. Market sentiment grew stronger from Bloomberg’s report of Trump’s plan to establish a dedicated White House role for crypto policy,” said Edul Patel, CEO Of Mudrex.
As Bitcoin continues to rally upward, several analysts predict that the next significant test would be the psychological $100,000 level, which could be reached in the coming weeks. Investors are speculating that another Trump term may result in larger budget deficits, higher inflation, and potential shifts in the global role of the dollar- all factors that could further benefit Bitcoin’s price. With a gain of over 130% in 2024 so far, Bitcoin’s rally underscores its resilience and appeal as a hedge against economic uncertainty.
Notably, the introduction of options trading for BlackRock’s Shares Bitcoin Trust marks a turning point in Bitcoin’s journey. It highlights growing institutional interest and provides, investors with more ways to gain exposure to the asset.”
Institutional inflows post Trump’s election victory Since Trump’s election victory, US spot Bitcoin exchange-traded products have attracted approximately $4.2 billion in inflows. This represents 15% of the total inflows since such products were introduced on US exchanges earlier this year. Analysts suggest that these inflows are a reflection of increased investor confidence in Bitcoin as a mainstream asset class.
Bitcoin’s consistent price rally signals a broader shift toward mainstream adoption. Industry analysts believe that institutional participation, along with growing retail interest, is paving the way for cryptocurrencies to become a part of global investment portfolios.