According to data from the derivatives exchange Deribit, call options are betting on bitcoin reaching 0.1 million dollars. There are constant optimistic voices in the market, but some industry insiders point out that a lot of good news has already been priced into bitcoin, and in addition, the surge in US bond yields is unfavorable for cryptos.
After a brief pause, on Wednesday during USA trading hours, the rally in cryptos ignited by Trump's victory in the USA presidential election regained momentum. Bitcoin broke through the important barrier of 0.09 million dollars, and continued to rise, reaching a high of 93,483 dollars, setting a new historical record.
Digital currencies with leading market cap rose across the board.
Supported by Musk, dogecoin surged over 16% in a day. Dogecoin is one of the strongest-performing currencies in the crypto field recently. After fervently supporting Trump’s victory in the USA presidential election, Trump announced on November 12, local time, that Musk would become one of the leaders of Trump's "Department of Government Efficiency" (DOGE) program. The acronym for this department is obviously a nod to dogecoin.
Regarding cryptos concept stocks, $BTC Digital (BTCT.US)$ rose over 68%, nearly 9 times in 3 days.
According to data from the derivatives exchange Deribit, call options betting is concentrated on bitcoin reaching 0.1 million dollars.
At the beginning of this week, the inflow of funds into the spot bitcoin etf in the usa exceeded 1 billion dollars.
Wall Street generally believes that Trump's commitment to fully engage in the cryptos field has pushed the price of Bitcoin to new heights. Trump has vowed to turn the USA into the world's capital of cryptos. Speculators of Bitcoin are betting on a more relaxed regulatory environment and anticipate that the authorities may establish a cryptos reserve fund to help boost sustained demand.
Michael Novogratz, CEO of Galaxy Digital, stated that people need to sell long-term bonds in the bond market. The price of bitcoin could rise to 0.5 million dollars. Bitcoin is expected to rival gold within ten years. However, the likelihood of bitcoin becoming a reserve asset is relatively low. The international reserve currency status of the dollar does not require support from certain factors.
Analysts also pointed out that the relatively moderate leverage in the crypto market has reduced the risk of significant corrections. The market's breather is likely to be temporary, with strong tailwinds still present.
However, there are also skeptical voices in the market. Some industry insiders pointed out that while further increases cannot be ruled out, much good news has already been factored into the price of bitcoin. Furthermore, us treasury yields and the dollar are both rising, and the relatively high cost of borrowing is unfavorable for risk assets like cryptocurrencies.
Editor/Somer