Bitcoin market growth has surged beyond $100,000, drawing significant interest from institutional investors. The positive sentiment around Bitcoin’s stability above this psychological barrier signals continued growth in the cryptocurrency market. After a little dip earlier in the week, Bitcoin has recovered and is trading over $100,000 again. In 2024, the Pew Research Center conducted a survey that revealed 17% of Americans had ever invested in, traded, or used a cryptocurrency.
This statistic has remained unchanged since 2021. Many investors are now experiencing FOMO due to Bitcoin’s surge beyond $100,000. The Fear and Greed Index measures market mood by reading “extreme greed.” In contrast to the most popular cryptocurrency at the moment, sidelined traders who are still seeking to enter the market should consider purchasing inexpensive altcoins.
Trump Backs Crypto
On Thursday, incoming U.S. President Donald Trump said, “We’ll do something great with Crypto because we don’t want China or anybody else… but others are embracing it, and we want to be ahead.” Trump said the strategic Bitcoin reserve would be excellent, boosting Crypto speculators’ optimism. Donald Trump’s pro-crypto attitude and selection of crypto-friendly individuals for AI & Crypto Czar and U.S. SEC Chair have eased Crypto market players’ regulatory and policy fears. After its pullback this week, Bitcoin rose beyond $100,000, and altcoins climbed with it. Cheap altcoins provide traders who missed dollar-cost averaging to purchase Bitcoin this cycle an alternate opportunity after the flash collapse. Crypto speculators expressed concern about their Bitcoin holdings following the launch of Google’s latest processing technology—no significant price effect.
Bitcoin Above $100K
The options data paints an optimistic picture for the cryptocurrency, reflecting the strong Bitcoin market growth, which currently has a market valuation of $2 trillion. 3.75985 is the value of the 25-delta risk reversal for Bitcoin over 14 days. The fact that the implied volatility of calls exceeds that of puts indicates a bullish market. As Bitcoin maintains its position over $100,000 across spot exchange platforms, more market players are placing bets on an increase in its price. The market has an intense positive mood when the put-call ratio is 0.55 or below.
This suggests that traders are currently purchasing more calls than puts. Derivatives traders anticipate a buoyant market, bolstering the price rise thesis for Bitcoin. Since Bitcoin’s price rose beyond $100,000 on Wednesday, implied volatility has decreased. Within the last twenty-four hours, the hourly chart shows a decrease. The expectation among traders that prices would remain stable and that significant changes would be less likely to occur is often indicated by a fall in the IV. Bitcoin supports this notion by maintaining its position above a significant psychological barrier.
Altcoin Season Surge
On a scale that ranges from 0 to 100, the altcoin season index at the blockchain center has increased for the first time to 71. There was a six-point increase in the index between December 9 and December 12, even though 75 indicates altcoin season. During the ninety days known as altcoin season, seventy-five percent of the top fifty alternative cryptocurrencies outperform Bitcoin. The index suggests that the market is approaching the second leg of cryptocurrency season, which could increase token values in the coming weeks.
AERO Price Discovery
Three key storylines support the list of affordable alternative cryptocurrencies in this cycle, potentially giving overlooked buyers an advantage over Bitcoin holders. The increasing inflows of funds from institutional investors and retail traders, together with favorable options measures, might cause Ethereum to exceed Bitcoin. This, in turn, paves the way for the emergence of Ethereum beta plays, Layer 2 tokens, staking tokens, Ethereum-based meme currencies, and DeFi tokens like AAVE, Pendle, Maker, Ethereum Name Service, and Pepe.
There is a possibility that traders may see a comeback in demand for gaming tokens and artificial intelligence tokens as the importance of AI continues to grow. Bitcoin-based meme currencies have the potential to compete with memes built on Ethereum, Solana, and XRP technology. There is a buy zone between $2.080 and $2.146 for AERO, which is currently trading. A previous all-time high for AERO was $2.372, and the token is now trading less than 4% below this level. The Fibonacci retracement of the rise from the low in November to the top in December creates a target price of $3,142 for the price discovery that will take place during this cycle.
Bitcoin Price Stability
Because the bulk of institutional money will be streaming into Bitcoin in 2024, the cryptocurrency market cycle will be different from the bull runs that have occurred in the past. Even though the bull run is still strong, the “capital rotation” argument has lost some credibility. The price of Bitcoin may remain close to the psychologically critical $100,000 threshold for a considerable amount of time, as indicated by options analytics. There is a possibility that the return of altcoin season would increase prices; nevertheless, a market correction may occur if Bitcoin has a sudden decline.
Also Read: Binance Labs Invests in Perena to Boost Stablecoin Adoption
In Summary
By 2024, institutional investors have propelled Bitcoin market growth, pushing its value beyond $100,000. Traders are now facing fear of missing out (FOMO), and a consistent 17% of Americans have utilized cryptocurrencies despite this spike. President Trump’s pro-crypto stance has alleviated regulatory concerns and heightened excitement. Market data reveals a positive mindset, with increased calls on Bitcoin options and price stability, even if Bitcoin stays over $100,000. Opportunities for traders include inexpensive altcoins like AERO and a rising altcoin season index, dating atingdatingsingins may see profits. This cycle is different from previous bull runs because of the increased investment from institutions; as a result, Bitcoin may find stability around the $100,000 level.
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