Bitcoin continues to break barriers, hitting an all-time high for the second consecutive day as traders shift their focus to the $110,000 price level.
On Tuesday, Bitcoin surged as much as 2.1% to reach $108,315 before pulling back to around $106,000 — where it started the day. This milestone highlights Bitcoin’s remarkable momentum, with the cryptocurrency climbing over 150% year-to-date. The options market is reflecting growing trader optimism for further gains.
“We’ve seen buyers of $110K-$120K and $110K-$125K call spreads for January expiry, as well as traders rolling up their strikes from $100K/$105K to 120K+ levels,” noted Shiliang Tang, President of Arbelos Markets, a leading crypto trading firm.
Institutional Adoption Fuels Bitcoin’s Rally
Bitcoin crossed the $100,000 mark less than two weeks ago following President-elect Donald Trump’s announcement to nominate crypto advocate Paul Atkins as the chair of the US Securities and Exchange Commission (SEC). Since then, growing institutional adoption has further pushed Bitcoin to new highs.
Companies like MicroStrategy Inc. continue to play a pivotal role in this rally. Recently, MicroStrategy’s inclusion in the Nasdaq 100 and its ongoing open-market Bitcoin purchases have amplified Bitcoin dominance.
“Since last week’s MSTR inclusion in the Nasdaq 100 and its continued BTC purchases, we’ve seen capital rotation heavily favor BTC, driving it to ATHs and attracting even more inflows,” Tang added.
The Trump Factor and Market Tailwinds
Trump’s election victory has introduced a wave of optimism across the crypto markets. Investors anticipate a more crypto-friendly regulatory environment under Trump’s leadership, which could solidify in 2025 when he officially takes office.
James Butterfill, Head of Research at CoinShares, identified several key factors supporting Bitcoin’s price action:
“What’s driving this rally? The US election ‘dividend,’ speculation around the US potentially holding Bitcoin as a strategic reserve asset, ongoing geopolitical instability, and expectations for looser monetary policy. These factors are likely to remain supportive well into 2025.”
(Polymarket data suggests a 27% probability that the US will hold Bitcoin as a reserve asset in 2025.)
Market Outlook: Entering a New Phase of Price Discovery
Macroeconomic developments, including the upcoming Federal Reserve interest rate decision, are also contributing to Bitcoin’s volatility and price movements.
Chris Newhouse, Director of Research at Cumberland Labs, emphasized that the market appears to be entering a new phase of price discovery.
“We’re observing neutral funding rates and derivatives positioning that signals some caution around all-time highs,” Newhouse explained. “However, the stage is set for a broader revaluation of crypto’s long-term potential. Factors like improved regulation, stable compliance frameworks, or even official government BTC holdings could act as powerful catalysts moving forward.”
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