Bitcoin reached a new milestone on Wednesday, surging to an unprecedented $94,900 as the cryptocurrency market experienced a strong rally. The uptick comes amid growing enthusiasm for spot Bitcoin ETFs and their newly launched options trading.
While Bitcoin jumped 3% in 24 hours to set its new record, other major cryptocurrencies showed mixed performance. Ethereum remained steady, and Solana posted modest gains of 1%.
The rally coincides with the successful debut of options trading for BlackRock's iShares Bitcoin Trust ETF (IBIT), approved by the Commodity Futures Trading Commission. IBIT's first day of options trading proved remarkable, with 354,000 contracts traded representing nearly $2 billion in notional exposure.
Bloomberg ETF analyst James Seyffart noted that IBIT's options trading likely contributed to Bitcoin's push toward new heights. The impressive $1.9 billion opening day for IBIT options far surpassed the previous record set by ProShares Bitcoin Strategy ETF, which saw $363 million in its debut.
Looking ahead, Bitget Research's Chief Analyst Ryan Lee offered perspective on Bitcoin's price trajectory. Lee pointed to Bitcoin's historical four-year cycle, influenced by halving events that reduce mining rewards. With the next halving scheduled for April 2024, Lee suggests Bitcoin could peak between late 2024 and mid-2025.
Using the Pi Cycle Top Indicator, known for its accuracy in predicting Bitcoin peaks, Lee projects potential prices between $118,928 and $150,000 during this cycle. He also noted that market analysis indicates Bitcoin might reach new heights within 6-9 months following an early 2024 mid-cycle peak.
The market's volatility was evident in recent trading activity, with $315 million in leveraged positions liquidated over 24 hours, affecting over 114,000 traders. Long positions accounted for $195 million of these liquidations, according to CoinGlass data.
This latest price milestone adds another chapter to Bitcoin's remarkable journey, as institutional involvement and market maturity continue to shape the cryptocurrency landscape.