Investing.com-- Bitcoin rose to a new record high on Thursday, extending a run of recent gains as sentiment towards crypto markets remained upbeat on the prospect of friendlier regulations under Donald Trump.
An influx of speculative trading, after the launch of options on a spot Bitcoin exchange-traded fund this week, also boosted prices.
The world’s largest crypto hit a record high of $98,310.57, before retreating slightly to $97,224.0 by 09:16 ET (14:16 GMT). Bitcoin was now within spitting distance of the coveted $100,000 level.
Bitcoin remained an outperformer among its crypto peers, with most major altcoins moving in a flat-to-low range on Thursday. A rally in crypto prices beyond Bitcoin had largely petered out over the past week.
Bitcoin nears $100k on Trump cheer
Bitcoin’s recent rally was fueled chiefly by optimism over a second Trump presidency, after he won the 2024 elections in early-November.
The crypto was close to the coveted $100,000 level, which analysts said could be hit soon if price momentum persisted. But Bitcoin was also seen pushing further into overbought territory, which could herald a sharp drop, especially if traders lock in recent profits.
Trump- who had campaigned on a pro-crypto platform, is considering creating a new White House role dedicated towards crypto regulation, Bloomberg reported this week. The report comes amid close focus on just what a Trump administration will entail for crypto.
The president-elect had promised to make America the crypto capital of the world.
Bitcoin ETF options also boost prices
Options trading for Blackrock’s iShares Bitcoin Trust (NASDAQ:IBIT) ETF launched on Tuesday, drawing more capital into crypto markets.
Options trading generated nearly $1.9 billion in notional exposure, Bloomberg Intelligence ETF analyst James Seyffart said.
Options trading ties further into crypto’s speculative nature, and is expected to further underpin capital inflows to crypto markets.
Coinbase CEO Armstrong sells nearly $300 mln in shares; MicroStrategy soars
Elsewhere, Coinbase Global Inc (NASDAQ:COIN) CEO Brian Armstrong sold nearly $300 million in shares this week, regulatory filings showed on Wednesday.
Armstrong’s sales come as Coinbase shares soared to a three-year high on cheer over Trump’s election win. They were also trading up more than 100% so far in 2024.
Meanwhile, shares in MicroStrategy Incorporated (NASDAQ:MSTR) jumped over 14% in premarket trading Thursday after the company raised its planned convertible bond offering to $2.6 billion from an initial $1.75 billion, signaling further bitcoin acquisitions.
The convertible bond was issued with a 0% interest rate, aligning with the lowest rates seen in such deals this year. It includes a 55% conversion premium above the stock’s composite price from Tuesday afternoon trading, making it one of the highest premiums for a new convertible bond this year.
In addition, the offering features an option for an extra $400 million if initial buyers opt to purchase more of the bonds.
Crypto price today: altcoins mixed
Broader crypto prices saw mixed performance amidst Bitcoin's latest surge.
World no.2 crypto Ether jumped over 6% to $3,360.11. Meme token Dogecoin, which had shot up in popularity after being potentially referenced by Trump, traded flat at $0.3938, although it remained close to recent three-year peaks.
XRP, ADA and MATIC fell between 0.5% and 4.5%, while SOL climbed more than 2%.
Ambar Warrick contributed to this report.