Bitcoin hits record, heads toward $100,000 rally

In a historic moment for Bitcoin, the value of the virtual currency has crossed the $98,000 threshold. Such growth in value indicates increased excitement among investors especially as there are speculations of another presidential run for Donald Trump.

On the other hand, on this price rally, the price of Bitcoin, the biggest cryptocurrency by far, rose by more than three percent to about $97,930.00. The movement has also been reflected in the equity markets, where shares of the crypto brokerage firm Coinbase pre-market trading were also up by 3%. Moreover, shares of mining companies rose by an impressive 9%, suggesting that there is confidence in the market for cryptocurrencies as a whole.

During this month, the price of Bitcoin has been beaten record after record, due in part to the generalized belief that a presidency of Trump is good for cryptocurrencies. What is driving the interest of investors, in particular, is the possibility of more amicable policies regarding regulation and the creation of a national strategic reserve for Bitcoin which would cement its place in the economy.

The recent bullish behavior of Bitcoin’s value can be rightfully explained by the growing rates of funding, and open interest in the futures market, especially in the course of the activities on the Asian trading period. What is more, excess liquidations of short trades, which are forced sales of a volatility trend where stakes have been placed in the decline of prices, recorded within the last twenty-four hours exceeded eighty-eight million dollars contributing to the upswing in price.

Regardless of these advancements, Bitcoin will face a serious threat as a result of achieving the psychological milestone of $100,000, which is expected to come in a few weeks from now, perhaps as early as Thursday, warns market analyst Rob Ginsberg. If Trump manages to win again, the consequences may go further than the crypto world and may involve more expansive government deficit spending, rising inflation, and the changing position of the dollar in the world. All these may help fuel the demand for Bitcoin and its price may appreciate further.

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