Bitcoin surged to a record high of nearly $98,000 on November 21, 2024, continuing a meteoric rise of over 35% since early November. With the $100,000 milestone now within reach, optimism among investors and crypto enthusiasts is at an all-time high.

The rally has been fueled by multiple factors, including speculation about the creation of a Bitcoin strategic reserve, a favorable shift in political sentiment toward cryptocurrencies, and heavy purchases by MicroStrategy, the largest corporate Bitcoin holder.

Institutional Momentum and New Developments

A significant boost for Bitcoin came this week with the launch of options trading for the iShares Bitcoin Trust, the largest Bitcoin exchange-traded fund. The first day saw over 350,000 contracts traded, with 80% of the volume in call options—indicating a strong bullish sentiment. Market makers hedging these options by buying the ETF provided additional support for Bitcoin’s price.

Scarcity Continues to Drive Demand

Bitcoin’s limited supply remains a cornerstone of its appeal. With nearly 20 million of the total 21 million Bitcoin already mined, the scarcity factor continues to fuel demand. The cryptocurrency’s market value is now approaching $2 trillion.

However, skeptics warn that Bitcoin’s value remains speculative and heavily driven by market sentiment, and sharp corrections are always possible if enthusiasm wanes.

MicroStrategy Drives Demand

MicroStrategy has been a key player in Bitcoin’s recent surge, ramping up its purchases. Since late October, the company has raised $6.6 billion through equity sales, funneling the funds into Bitcoin. It announced a $2.6 billion convertible debt offering, with proceeds earmarked for further Bitcoin acquisitions. As of November 19 ,2024  MicroStrategy’s Bitcoin holdings totaled 331,200, with a valuation exceeding $31 billion. According to public information, the company intends to expand its Bitcoin portfolio by approximately $42 billion over the next three years, leveraging equity sales and fixed-income instruments.

More Companies Join the Bitcoin Wave

Following MicroStrategy’s lead, Bitcoin miner Mara Holdings priced $850 million in convertible debt earlier this week, with much of the proceeds likely directed toward Bitcoin purchases.

The $100,000 Question

With Bitcoin now on the cusp of $100,000, the crypto market is buzzing with speculation about its next move. While the future remains uncertain, the combination of institutional interest, market momentum, and shifting political dynamics suggests Bitcoin’s rise is far from over.