Bitcoin surged to an all-time high of $88,378, sparking a wave of investor activity and market volatility across the cryptocurrency landscape. Fueled by speculation around pro-crypto policy shifts under a potential new U.S. administration, the digital asset broke through the $88,000 barrier with a 24-hour price jump exceeding 10%. This rally contributed to a 14% gain over just five days, adding over $10,000 to Bitcoin’s value.
The momentum didn’t stop there—altcoins followed suit, with Dogecoin, buoyed by past endorsements from Elon Musk, surging more than 100% since early November. As enthusiasm builds, so has risk: Coinglass data reveals that over 150,000 traders were liquidated in the past 24 hours, with total losses exceeding $570 million. Notably, over 70% of those liquidations came from short sellers caught on the wrong side of the bullish move.
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Trump’s Pro-Crypto Stance Fuels Investor Confidence
Market sentiment has been significantly influenced by former President Donald Trump’s campaign promises to embrace digital assets. He has pledged to establish a Bitcoin strategic reserve, appoint crypto-friendly regulators, and remove SEC Chair Gary Gensler, who has long criticized the industry for fraud risks. These proposals have galvanized investor confidence, particularly among institutional players.
BTCMarkets CEO Carolyn Bloor noted that Bitcoin’s strength is lifting the entire crypto ecosystem, with smaller tokens benefiting from increased liquidity and attention. The renewed optimism helped push the global cryptocurrency market cap above $3 trillion for the first time since November 2021—a psychological milestone signaling broader market recovery and maturation.
Institutional Inflows Signal Growing Legitimacy
Institutional adoption continues to accelerate. BlackRock’s iShares Bitcoin Trust (IBIT) recorded nearly $1.4 billion in net inflows on a single day last week—the largest daily inflow in its history. With over $35 billion in assets under management, IBIT now surpasses BlackRock’s own iShares Gold Trust, which holds $33 billion.
This shift underscores a growing preference for Bitcoin as a macro hedge, even overtaking traditional safe-haven assets like gold. Bloomberg data visualizations show the bitcoin fund’s trajectory in yellow outpacing the gold fund’s black line—an emblematic moment in financial history.
Sosovalue data further confirms this trend: 12 spot Bitcoin ETFs—including offerings from Fidelity (FBTC) and others—saw a combined $2.3 billion in net inflows over three trading days following November 5. This institutional stamp of approval is reshaping how investors view digital assets—not as speculative instruments, but as legitimate components of diversified portfolios.
MicroStrategy Bets Big: 27,200 BTC Purchased in 10 Days
One of the most aggressive institutional moves came from MicroStrategy. The company recently acquired 27,200 bitcoins for approximately $2.03 billion between October 31 and November 10—its largest purchase since December 2020. This acquisition brings its total holdings to around 279,420 BTC, valued at over $24 billion at current prices.
Founded by Michael Saylor, MicroStrategy began adopting Bitcoin as a treasury reserve asset in 2020 to hedge against inflation. Since then, it has used stock offerings and convertible debt to fund its aggressive accumulation strategy. The results have been staggering: MicroStrategy’s stock soared over 25% on Monday alone and has risen more than 2,500% since August 2020, vastly outpacing Bitcoin’s own 660% gain during the same period.
Even compared to tech giants like NVIDIA—a leader in AI-driven growth—MicroStrategy’s returns have doubled over the past few years. Without counting BlackRock’s ETF, MicroStrategy remains the largest publicly traded corporate holder of Bitcoin.
Other global investors are following suit. Brazil’s Verde Asset Management, led by veteran investor Luiz Trabuco, has also taken a bullish stance on Bitcoin while maintaining neutral views on Brazilian equities, expressing optimism toward the Indian rupee and bearishness on the euro.
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Market Eyes $100K: Options Bets Skyrocket
Despite the frenzy, caution persists. Deribit data shows that traders have placed significant bets on Bitcoin reaching $100,000 by December 27. Over 9,635 BTC—worth about $780 million—is tied to call options targeting this price point, making it the most heavily traded contract for that expiry date.
However, Deribit estimates only an 18.6% probability of success. Nick Furstner, founder of DeFi protocol Derive, highlighted this trade as one of the most watched in recent weeks: “Post-election market dynamics have triggered outsized positioning in high-strike calls.”
While optimism runs high, analysts warn that policy promises don’t guarantee execution. There is no concrete legislative progress yet on establishing a national Bitcoin reserve or reshaping regulatory leadership. Market participants must remain vigilant as macroeconomic conditions and regulatory uncertainty could shift sentiment quickly.
FAQ Section
Q: Why did Bitcoin surge recently?
A: The rally was driven by strong institutional inflows, particularly into spot Bitcoin ETFs, and growing expectations that a potential shift in U.S. leadership could lead to favorable crypto regulations, including a national Bitcoin reserve.
Q: How many people were liquidated during the price spike?
A: Over 150,000 traders were liquidated within 24 hours, with total losses exceeding $570 million—mostly short sellers caught off guard by the rapid price increase.
Q: Is Bitcoin outperforming gold?
A: Yes. Recently, Bitcoin has significantly outpaced gold in terms of price appreciation, suggesting investors view it as a stronger hedge against future economic policies and inflation concerns.
Q: Who owns the most Bitcoin among public companies?
A: MicroStrategy holds approximately 279,420 BTC—the largest corporate holder—followed by institutional funds like BlackRock’s iShares Bitcoin Trust.
Q: What is the likelihood of Bitcoin hitting $100K by year-end?
A: According to Deribit’s pricing models, the probability stands at just 18.6%, indicating that while traders are optimistic, the target remains highly speculative.
Q: Are ETFs contributing to Bitcoin’s price rise?
A: Absolutely. Spot Bitcoin ETFs have seen massive inflows—over $2.3 billion across major funds in just three days—providing sustained buying pressure and boosting investor confidence.
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