Islamabad (Newsman): Reuters reported on November 20 that US President-elect Donald Trump’s social network company was in talks to acquire cryptocurrency trading platform Bakkt, causing Bitcoin to reach a record-breaking high above $94,000 for the first time.
The claims also fueled expectations that Trump’s second term in office would bring a crypto-friendly administration.
Bitcoin Achieved Milestone
Through 2024, the largest cryptocurrency in the world has more than doubled in size. It reached the historic $94,078 mark at the close of the previous trading session, but it fell to $92,104 in Asia at the beginning of November 20.
In an interview with Livemint, Edul Patel, co-founder and CEO of Mudrex, attributed the price increase to the launch of the first Bitcoin ETF option.
He added, “BlackRock’s Option saw a record $1.9 billion in trading volume on its first day, fueling Bitcoin’s price rally. However, profit-taking following the peak has pulled BTC back to its current level of $92,000.
Also read: Bitcoin takes reverse swing ; falls to $ 87.7 k
Meanwhile, escalating Ukraine-Russia tensions have put investors in a cautious mode. Bitcoin now faces resistance at $94,600, with support holding steady at $90,400.”
Why the Hike?
The Financial Times reported, citing two sources, that Bakkt is being considered for an all-stock takeover by the Trump Media and Technology Group, which runs Truth Social.
The NYSE-owned Intercontinental Exchange supports Bakkt.
The Trump deal chatter story and traders taking advantage of the first day of options trading on the NASDAQ over BlackRock’s Bitcoin ETF, according to Tony Sycamore, market analyst at IG, helped push Bitcoin to a record high.
Rising Cryptocurrency Markets
Trump’s pledged support for digital assets has propelled cryptocurrencies since his victory in the 2024 US Presidential Elections in November.
According to CoinGecko, traders are watching for less stringent regulations, and the increased excitement has driven the global cryptocurrency market value to $3.2 trillion, a record high.
Also read: Bitcoin Takes Reverse Swing; Falls to $ 83k
“Another kick higher should bring in a fresh chase from those who like to buy what’s strong,” according to Chris Weston, head of research at Australian online broker Pepperstone, who says there is genuine underlying purchasing demand for Bitcoin.