“Bitcoin Surges Past $97K Amid Ongoing ‘Trump Trade’ Momentum”

Bitcoin (BTC) is on an impressive upward trajectory, surpassing $97,500 in early Asian trading hours, just shy of the pivotal $100,000 mark. This surge, which pushes Bitcoin’s market capitalization closer to the $2 trillion threshold, reflects continued bullish momentum that has fueled a nearly 30% rise over the past two weeks.

The rally is being driven by several key factors, most notably the political landscape in the U.S., where a Republican victory has instilled optimism in crypto markets. Coupled with the Federal Reserve’s recent interest rate cuts, risk appetite has surged, contributing to a favorable environment for Bitcoin’s price growth. Traders are referring to this phenomenon as the “Trump trade,” which has seen all asset classes — from equities to bonds — benefit following the election results.

Additionally, the debut of BlackRock’s Bitcoin spot ETF (IBIT) options has had a major impact, with the options market seeing a staggering $2 billion in trading volume on day one. These options, which track Bitcoin prices and are physically settled, have generated a lot of interest, with 73,000 contracts traded in the first hour. The bullish sentiment was evident, with a call-to-put ratio of 4.4:1, signaling growing institutional confidence in Bitcoin as a mainstream asset.

This surge in institutional engagement is expected to reduce volatility and downside risk, further cementing Bitcoin’s place in traditional financial markets. Analysts have even issued price predictions as high as $200,000 in the coming months, fueled by the supportive regulatory landscape and increased mainstream adoption.