The bitcoin price has soared above $65,000. This surge comes after BlackRock, the world’s largest asset manager, got the green light for a new bitcoin initiative. At the same time, Federal Reserve Chair Jerome Powell issued a “radical” statement that has traders buzzing. Many are now betting that bitcoin could reach $100,000 following the U.S. presidential election.
Bitcoin options interest is growing, especially around the $100,000 mark. Geoffrey Kendrick, head of crypto research at Standard Chartered, noticed this trend. “Notably, the build-up has come faster than can be explained just by higher bitcoin prices,” he said. “The jump in open interest at the $100,000 strike this week indicates something else is driving participants.” Traders are optimistic that the bitcoin price could surge to $100,000 after the election.
U.S. Vice President and 2024 Democratic Party nominee Kamala Harris has promised to encourage innovative technologies like AI and digital assets. At a Wall Street fundraiser reported by Bloomberg, she said that if she wins the White House in November, she would support crypto businesses while protecting consumers and investors. This suggests that a Harris victory could be positive for bitcoin and the broader cryptocurrency market.
Kendrick believes that either outcome of the November 5 election will benefit bitcoin. “These comments suggest that regardless of who wins, bitcoin will benefit,” he wrote. The bitcoin and crypto market has been leading in performance recently, especially after the Federal Reserve’s historic interest rate cut last week. This has increased positive sentiment among investors.
If former U.S. President Donald Trump wins the election, Kendrick predicts the bitcoin price could surge to $125,000. Even if Harris wins, he expects bitcoin to climb to $75,000. Trump has embraced bitcoin and crypto this year, promising to create a U.S. bitcoin strategic reserve if elected. He is also backing a crypto project led by his sons, Don Jr. and Eric.
Trump’s commitment to create a U.S. bitcoin strategic reserve has excited many in the crypto community. His sons are leading a crypto project that has gained significant attention. This shows a strong commitment to advancing digital assets in the United States. A Trump victory could lead to major developments in the cryptocurrency market.
Kendrick wrote earlier this month that a Harris victory might cause an initial price drop. “A Harris victory would likely trigger an initial price decline,” he said. “But we would expect dips to be bought as the market recognizes that progress on the regulatory front will still be forthcoming, and as other positive drivers take hold.” Investors may see any price dips as buying opportunities.
American investors are regaining their appetite for risk. New exchange-traded funds (ETFs) offering leveraged positions on MicroStrategy stock are booming. MSTX, launched in August, now has $357.6 million in assets under management. This fund gives investors daily leveraged investment results of 1.75 times the daily percentage change in MicroStrategy stock.
Another ETF, MSTU, launched last week. It offers two times the leveraged investment results. The product has seen huge inflows and now has over $80 million in assets. These ETFs are “long leverage” funds, meaning they use debt to amplify their positions. This can lead to greater returns, but also greater losses. Investors are showing significant interest in these risky investments.
Bloomberg ETF analyst Eric Balchunas commented on the popularity of these leveraged ETFs. He was surprised by the rapid growth. “I didn’t think there was room for both (especially so quickly),” he wrote on Twitter, describing their popularity as “wild.” He previously called such products the “ghost pepper of ETF hot sauce” due to their extreme volatility.
MicroStrategy is a public company known for its data-analyzing software. In 2020, it started putting bitcoin on its balance sheet to generate returns for investors. This strategy has attracted attention and led to the creation of leveraged ETFs focused on its stock. The company’s embrace of bitcoin has made it a focal point for investors interested in cryptocurrency.
Bitcoin options trading is showing a rapid build-up at the $100,000 strike price. This indicates that traders are betting on a significant price surge. The interest in options around this price suggests strong market confidence. Bitcoin options interest “has been building mostly around the round figure of $100,000,” Kendrick noted.
The Federal Reserve’s recent interest rate cut has impacted the bitcoin price rally. The crypto market has been leading in terms of performance following the Fed’s historic decision. Jerome Powell’s “radical” statements have also played a role in boosting investor confidence. These factors contribute to the positive outlook for bitcoin.
Kamala Harris’s support for innovative technologies like AI and digital assets has been well-received. Her comments suggest that if she becomes president, there could be favorable regulations and growth opportunities for digital assets. “These comments suggest either outcome on 5 November will end up being bitcoin positive,” Kendrick wrote.
As the U.S. presidential election approaches, traders are optimistic about bitcoin’s future. Whether Trump wins and pushes for a bitcoin strategic reserve or Harris wins and encourages crypto businesses, bitcoin seems poised for growth. With traders betting on a $100,000 price target and investors embracing leveraged ETFs, the crypto market is entering an exciting phase. The impact of the election, Federal Reserve policies, and growing investor interest all point to a potentially significant surge in the bitcoin price.
