MUMBAI: While cryptocurrency continues to spark debate in India about its necessity and potential risks, Bitcoin value, the world’s largest cryptocurrency, has surged to an all-time high, crossing $94,000 for the first time.
This milestone comes as the United States introduces options trading in cryptocurrency, signaling a significant step toward mainstream adoption.
Bitcoin closed at $94,078 in its latest trading session before slipping slightly to $92,355.44 by 10:10 AM (as per the reporting time of CoinMarketCap)., with a market capitalisation of $1.83 trillion, according to CoinMarketCap.
The rally has been attributed to a combination of institutional interest and groundbreaking developments in the crypto and financial sectors.
Geopolitical tensions, such as the ongoing Ukraine-Russia conflict, have also played a role in Bitcoin’s ascent. Investors are increasingly viewing the cryptocurrency as a hedge against uncertainty, with its decentralised nature offering a degree of stability in volatile times.
Options trading
The launch of options trading for BlackRock’s iShares Bitcoin Trust has proven to be a game-changer. On its first trading day, the new options recorded an impressive $1.9 billion in trading volume, contributing significantly to Bitcoin val’s price surge.
Commenting on the development, Edul Patel, Co-founder and CEO of Mudrex, said, “Bitcoin rallied to a fresh all-time high of $94,000, driven by the debut of the first Bitcoin ETF options.”
However, profit-taking following the peak has pulled BTC back to its current level of $92,000. Bitcoin now faces resistance at $94,600, with support holding steady at $90,400.
Adding to the excitement, reports suggest that Donald Trump’s media company is exploring a potential acquisition of Bakkt, a prominent crypto trading firm. This has sparked optimism among investors, who see it as a sign of a more crypto-friendly environment in the future.
Sumit Gupta, Co-founder of CoinDCX, noted, “The introduction of options trading for BlackRock’s iShares Bitcoin Trust marks a turning point in Bitcoin’s journey. It highlights growing institutional interest and provides investors with more ways to gain exposure to the asset. Bitcoin’s recent rally signals a broader shift toward mainstream adoption.”
Institutional players
The surge in Bitcoin’s price also reflects an increasing embrace by institutional players. MicroStrategy’s Michael Saylor recently announced plans to propose Bitcoin as part of Microsoft’s treasury strategy, citing its potential to enhance financial stability and mitigate risk.
Meanwhile, the broader cryptocurrency market exhibited mixed trends. Memecoins saw brief rallies, but market corrections following Bitcoin’s pullback from its peak overshadowed their gains.
Going forward
Despite the record-breaking performance, market analysts caution about potential volatility in the near term. Profit-taking has already begun, and minor corrections in Bitcoin’s price have emerged.
“Bitcoin is at a critical juncture, with strong resistance at $94,600 and support at $90,400,” said Patel. “While the price rally is promising, investors should remain cautious as the market adjusts to these significant developments.”
As the US races ahead with innovative crypto options, the debate over cryptocurrency’s relevance continues in India, underscoring the contrasting approaches to digital assets worldwide.
