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As dollar slumps, Bitcoin rises to record-breaking $94K amidst push from Trump and Blackrock ETF

A new development is afoot in the US market today as the cryptocurrency market saw renewed optimism and Bitcoin hit an all-time high of $94,000. The surge followed two major developments: Donald Trump’s re-election as 47th US President and the launch of options trading by BlackRock’s iShares Bitcoin Trust.

With Trump running the White House for a second term, traders believe that there will be a premium environment fostering crypto-friendly regulations. Investor confidence was further boosted by speculation that Trump’s social media company may be buying the crypto trading firm Bakkt. Bakkt was founded in 2018 and is a publicly listed company that assists businesses and institutions in the US and around the world in the cryptocurrency space.

This anticipated acquisition was based on the hope that Team Trump would green-light favourable cryptocurrency policies. Market analyst Tony Sycamore from IG said, “Bitcoin reached a new all-time high due to reports of a potential deal with Trump and traders capitalizing on the Nasdaq's first day of options trading for BlackRock's Bitcoin ETF.”

Also, a key role was the launch of options trading on BlackRock’s iShares Bitcoin Trust. On its first trading day, the options trades totalled $1.9 billion. This very significant activity raised the market’s confidence and helped push the Bitcoin price up further.

According to a report by TimesNow, Chris Weston, a strategist at Pepperstone noted that investors have shown a growing interest in Bitcoin. He further added, “There is genuine buying interest in Bitcoin, and a further price increase could attract more buyers looking for strong investments.”

Overall, the cryptocurrency market has enjoyed a fantastic year. Since January, Bitcoin’s value has nearly doubled to $43,000 while the market’s total value reached more than $3 trillion, CoinGecko confirmed.

BlackRock’s entrance to the cryptocurrency space via its Bitcoin ETF is being widely seen as the moment when institutional adoption officially takes place. This is an important sign of growing demand and maturing market structure, which many expect to draw in more institutional investors to trade.

These facts together with the position of the Trump administration as supportive of cryptocurrency have created the right environment for Bitcoin to go up. What the rally points to is an onset of optimism about the cryptocurrency market even among its skeptics.

To that end, progress on the Bitcoin price front and ongoing shifts in regulatory attitudes will persist as points of interest for buyers and sellers. The future of cryptocurrency depends with the ability of the new momentum to be sustained, thereby forming the new phase of the growth story.