New day, new record: Bitcoin surges past $95,000, 5 reasons why cryptocurrency breaking record after Trump's win

Cryptocurrency Bitcoin surged to another life-time high of $95,000 on Thursday, continuing to get investors bet who are optimistic after Donald Trump’s win in the 2024 US Presidential election as they expect that he would push through measures to ease regulation of the unit.

In the early Asian trade on Thursday, Bitcoin , which is considered to be the world’s largest cryptocurrency, reached $95,004.50 with observers expecting it to soon reach $100,000.

According to Coin Metrics, the digital currency, Bitcoin, last traded at $94,375.79, up 1.5 per cent for the day.

5 key reasons for Bitcoin surge

Since Trump’s triumph in the November 5 US Presidential election, the broader crypto market has added more than $800 billion in value, data from CoinGecko showed.

The record-breaking climb has been driven by a host of major developments in the cryptocurrency space. Let’s take a look at what they are.

1 - Options trading for BlackRock’s iShares Bitcoin Trust ETF

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Earlier this week, the options trading for BlackRock’s iShares Bitcoin Trust ETF (IBIT) began on the Nasdaq which has enhanced market sentiment.

The initial trading session saw a strong call-to-put ratio of 4.4:1, according to QCP Capital, signalling bullish investor interest.

During its debut, 354,000 contracts were traded and $1.9 billion in notional exposure, showing the increasing institutional interest in Bitcoin.

2 - Additional options to launch soon

In the coming days, more options for Grayscale and Bitwise bitcoin ETFs are set to launch, improving the sentiments of investors.

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3 - Talks of Trump acquiring Bakkt

Market sentiments are upbeat also because of the possible acquisition of Bakkt, a crypto trading platform by Trump’s Media and Technology Group (DJT), which operates Truth Social, in which he holds a 53 per cent stake.

The talks of possible acquisition have raised expectations of a potentially favourable environment for cryptocurrencies under Trump’s influence.

4 - Trump’s cryptocurrency pledge

Trump, once a skeptic of digital assets, shifted his stance and during his campaigning for the election, Trump had pledged to make the US the “bitcoin and cryptocurrency capital of the world,” and to put Elon Musk in charge of a wide-ranging audit of governmental waste.

Investors are also optimistic that Trump’s support of cryptocurrencies, as well as backing from a crypto-friendly Congress, will lead to policies that will be beneficial for the asset class.

5 - Eyes on Trump’s upcoming appointments

Traders are also keeping a close watch on Trump’s upcoming appointments for Treasury Secretary and SEC chair, anticipating a crypto-friendly regulatory framework and a potential national bitcoin reserve.

Analysts are also closely monitoring Nvidia’s earnings report which is expected later on Thursday as fluctuations in risk assets could further influence bitcoin’s trajectory.

Bitcoin to breach $100,000-mark

There is also a lot of speculation over whether Bitcoin will breach the $100,000 mark, a psychological milestone viewed by advocates as validation of its role as a store of value.

“While the path to $100,000 may not be smooth, demand appears insatiable,” a report by ToI quoted Tony Sycamore, Market Analyst at IG Australia Pty, as saying.

With inputs from agencies.