According to the Brave New Coin Bitcoin Liquid Index (BLX) Bitcoin reached a peak of $97,756 before stabilizing around $97,445, reflecting a 5.7% intraday gain and a market capitalization of $1.93 trillion. 

Bitcoin achieves yet another all-time high of $97756. Source: Brave New Coin Bitcoin Liquid Index.

This surge represents a dramatic 300% year-to-date increase from Bitcoin’s $30,000 level a year ago. Analysts attribute this to growing confidence in the digital asset sector, inflows into Bitcoin exchange-traded funds (ETFs), and heightened institutional participation. The broader cryptocurrency market has consolidated $900 billion in gains since Trump’s November 5 election victory, underscoring a marked shift in market sentiment.

Institutional Momentum and Regulatory Optimism

More than $4 billion has flowed into U.S.-listed Bitcoin ETFs since the election, fueling the rally. The debut of options trading on BlackRock’s Bitcoin ETF this week marked another milestone, with bullish call options outpacing bearish put options. “Institutional participation is driving this rally,” said Edul Patel, CEO of Mudrex, highlighting Bitcoin’s rapid ascent of 40% in just two weeks.

President-elect Trump’s pro-crypto agenda has amplified the optimism. Trump has vowed to make the U.S. the “crypto capital of the planet” and has proposed establishing a strategic Bitcoin reserve. Additionally, discussions within Trump’s team about creating a dedicated White House role for cryptocurrency policy have bolstered market sentiment.

Market Dynamics and Derivatives Activity

Bitcoin’s derivatives market signals further potential for growth. Analysts point to Bitcoin’s funding rates, which, at 10%, remain well below overheating levels observed earlier this year. Volatility has returned to the market, driven by the introduction of U.S. spot ETFs in January and the recent rollout of options trading.

The surge in price has also triggered liquidations, with $100 million cleared in the past 24 hours, 80% of which were short positions. “Buyers are strangling the sellers,” said Tony Sycamore, Market Analyst at IG Australia Pty. He noted that demand remains robust despite signs of profit-taking at current levels.

Looking Ahead: Will Bitcoin Break $100,000?

The $100,000 milestone is now within striking distance. Analysts believe the level holds symbolic significance, challenging skeptics of Bitcoin’s role as a modern store of value. Some forecasts suggest the cryptocurrency could surpass $200,000 by 2025, fueled by ongoing adoption and favorable market conditions.

MicroStrategy Inc., the largest corporate holder of Bitcoin, announced plans to increase its Bitcoin purchases by 50%, signaling continued institutional confidence. Meanwhile, billionaire investor Michael Novogratz highlighted a recent $10 billion “sell wall” around $90,000, indicating active trading interest at these levels.