Bitcoin, the most valuable and best-known cryptocurrency on the market, traded close to $95,000 this Wednesday, in a context marked by widespread increases since the electoral victory of Republican Donald Trump in the United States. Since the US elections, the cryptocurrency has appreciated 40%, breaking its historical records.
The price of bitcoin, which has reached $94,707, has been boosted this Wednesday by the news published by Financial Times that Trump Media and Technology Group, Donald Trump’s social media company, was in talks to buy cryptocurrency trading firm Bakkt.
“Trump’s apparent interest in promoting cryptocurrencies on a personal level has contributed to optimism that cryptocurrencies will be a priority when he assumes the US Presidency,” said Stéphane Ouellette, CEO of cryptocurrency trading company FRNT Financial.
Earlier this week, the diary The Wall Street Journal reported that Trump had met privately with crypto exchange CEO Brian Armstrong, which has further contributed to the optimism.
Market operators are betting that President-elect Trump’s promised support for digital assets would lead to a less restrictive regulatory regime. During the election campaign in the race for the White House, Trump promised to turn the country into the world capital of cryptocurrencies, create a strategic reserve of bitcoin and appoint regulators who would bet on digital assets.
This growing enthusiasm has pushed the value of the global cryptocurrency market past $3 trillion to an all-time high, according to data and analytics aggregator CoinGecko.
Spot bitcoin exchange-traded products in the United States have attracted about $4.2 billion in inflows since Trump’s election victory, about 15% of total inflows since the products launched on U.S. exchanges in January.
eToro analysts emphasize that the US presidential elections “have further strengthened the cryptocurrency markets.” However, they consider that the technical indicators show that the price of bitcoin is in overbought territory, so there could be a pause in its rally, while it consolidates momentarily, or declines in the short term, before a new upward movement.
Binance experts also attribute the rise of the cryptocurrency to the recent launch of options trading for spot bitcoin ETFs, which in their opinion “marks a significant step towards greater integration of cryptocurrencies into traditional financial systems.”
They have explained that options on BlackRock’s iShares Bitcoin Trust ETF (IBIT) begin trading on the Nasdaq technology index, a development that will increase liquidity in the cryptocurrency ecosystem by providing investors with additional tools for hedging and speculation.
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