Bitcoin (BTC) Surges Above $97K to Hit Record High as IBIT ETF Options Debut

Bitcoin (BTC) reached an all-time high on Thursday, surpassing $97,000 for the first time, just one day after BlackRock’s Bitcoin ETF (IBIT) options debuted. The milestone adds to a streak of record-breaking performances as the cryptocurrency enjoys significant momentum fueled by various favorable factors.

Data from CoinGecko revealed BTC reached an all-time high of $97,836.61. The cryptocurrency’s value has more than doubled this year and surged by approximately 40% in the two weeks following Donald Trump’s election as the next U.S. president, alongside a wave of pro-crypto lawmakers entering Congress.

During his campaign, Trump pledged to make the U.S. a global leader in cryptocurrency, vowing to establish the country as the “crypto capital of the planet” while building a national bitcoin reserve.

IBIT ETF Options Debut

In the wake of the election, U.S.-listed Bitcoin exchange-traded funds (ETFs) have seen inflows exceeding $4 billion. Notably, IBIT has witnessed a significant inflow throughout 2024.

IBIT’s strong performance extended to the options market, where more people placed bets on its price going up (call options) than on its price going down (put options).

TikTok influencer Wendy O suggested that recent gains might be linked to significant investments in bitcoin ETFs. She highlighted that ARK’s ARKB ETF saw $267.3 million in inflows on Wednesday, while BlackRock’s Bitcoin ETF options recorded an impressive $1.9 billion in traded volume on their first day.

The increasing demand for institutional bitcoin exposure has helped drive its price higher. Tony Sycamore, an analyst at IG Markets, noted that Bitcoin is now in ‘overbought territory’ but seems to be heading toward the $100,000 mark.

Related Stocks Follow the Trend

The cryptocurrency’s rally has also propelled related stocks. According to Reuters, shares of bitcoin miner MARA Holdings (MARA) gained nearly 14% overnight, while MicroStrategy (MSTR), a company heavily invested in Bitcoin, rose 10%, pushing its market valuation past $100 billion.

The broader market optimism extends beyond stocks, with many looking to the new administration for potential regulatory clarity. Will Peck, head of digital assets at WisdomTree, noted that while hopes are high, it may still be too early to predict the regulatory direction.