Bitcoin Price Forecast: Can BTC Reach $120,000 Post-Trump Inauguration?
Bitcoin Price Forecast – The cryptocurrency market is brimming with optimism as Bitcoin (BTC) prices show signs of recovery, with traders expecting a surge following President-elect Donald Trump’s inauguration on January 20. Recent market activity reveals significant bullish sentiment, with traders positioning themselves for a potential rally that could drive Bitcoin’s price to new record highs in the coming months.
Major Call Option Purchases Indicate Optimism
In a notable development, a trader on the cryptocurrency exchange Deribit recently placed a massive bet on Bitcoin’s price reaching new heights, spending over $6 million to purchase $100,000 strike call options set to expire on March 28. According to Amberdata, a leading data source in the crypto space, this move signals a strong belief that Bitcoin will break its current price records shortly after Trump assumes office.
In addition to the $100,000 strike options, traders are also showing significant interest in the $120,000 strike options. These have become the most popular contracts on Deribit, with an open interest of $1.52 billion. The strong demand for these options highlights widespread anticipation that Bitcoin will soon surpass the $100,000 mark and potentially push toward the $120,000 level.
Bullish Sentiment Amid Political Changes
The enthusiasm surrounding these call options comes at a time when Bitcoin is attempting to regain the $100,000 threshold, trading above $99,500 at the time of writing. This marks an 8% recovery from the December 30 low of $91,384, signaling a potential turning point for the leading cryptocurrency by market value.
Greg Magadini, the director of derivatives at Amberdata, emphasized that the period surrounding Trump’s inauguration could be a prime time for bullish announcements and pro-cryptocurrency policies. Such measures, if implemented, could act as significant catalysts for further Bitcoin price appreciation.
Regulatory Changes and Investor Confidence
There are growing expectations that regulatory changes, particularly from the U.S. Securities and Exchange Commission (SEC), could foster a more favorable environment for Bitcoin and other cryptocurrencies. CF Benchmarks, a regulated cryptocurrency index provider, pointed out that a restructured SEC under pro-crypto leadership could reduce enforcement risks and encourage innovation in the market. However, they also cautioned that policy delays or changes might introduce short-term volatility, potentially cooling market optimism.
Since Trump’s victory in the 2024 election, Bitcoin has enjoyed a price surge, rising from approximately $70,000 to $108,000 in just a few weeks. However, this rally slowed in late December, likely due to year-end profit-taking and concerns over potential interest rate hikes from the Federal Reserve.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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