Even though Bitcoin Approaches 100 Thousand Dollars, a Withdrawal is Expected

CoinDesk 20 Index: 3,048.35 +2.24%Bitcoin (BTC): $97,988.32 +4.55%Ether (ETH): $3,284.40 +6.06%S&P 500: 5,917.11 0%Gold: $2,664.88 +0.56%Nikkei 225: 38,026.17 -0.85%

Buoyed by the rally catalyzed by the Republican win in the US elections earlier this month, bitcoin (BTC) momentum continues to move forward at full speed with no signs of slowing down, pushing the asset above $97,000 for the first time in the early hours of the day. Having surged above $98,000 in the early hours, BTC is just 3% away from the $100,000 milestone that would push the asset above a $2 trillion market cap. The cryptocurrency has gained nearly 30% in the last 14 days as a pro-crypto government comes to the United States and the Federal Reserve cuts interest rates, boosting traders’ appetite for risk. The rally has been impacting all asset classes, from stocks to bond yields, since Donald Trump’s election victory and has been dubbed the “Trump trade” by traders.

As Bitcoin (BTC) moves towards $100,000, traders are using options tied to the stock price of MicroStrategy, one of the largest holders of bitcoin, currently leveraged 2x long exchange-traded fund (ETF) to increase their profits. The Defiance Daily Target 2X Long MSTR ETF, which trades on Nasdaq under the ticker MSTX, aims to deliver twice the daily performance of MSTR’s share price. The ETF rose 20%, briefly surpassing $180 on Tuesday, while MSTR rose 10% to $473. Market participants piled into call options that strike higher at $230, according to data obtained by analytics platform ConvexValue.

Bitcoin (BTC), the largest cryptocurrency by market cap, is approaching $2 trillion in market value for the first time after its price surged $30,000 since Donald Trump won the US presidential election at the beginning of the month. The price of BTC, currently valued at $1.93 trillion, surpassed $97,000 for the first time earlier in the day. The market dominance of cryptocurrency reached up to 61.8%. Bitcoin futures open interest (OI) on the Chicago Mercantile Exchange (CME) increased by a third compared to before the November 5 election, reaching 218,000 BTC ($21.3 billion), according to Coinglass data. Increasing open positions while prices are rising indicates bullish sentiment in the market.

Widely used to measure interest in trending topics, Google Trends searches for memecoins have reached 100 points worldwide in the last five years. 100 points represents peak popularity (the maximum number of searches for the query during a given time period) and indicates upcoming indicates a retail investor frenzy.Source: Google Trends