Bitcoin Surges 4.8% to $101,402.19, Driving Crypto Market Cap Above $3 Trillion

Bitcoin has surged past the $100,000 mark, reaching a new milestone in its price trajectory. By midday, the world's largest cryptocurrency was trading at $101,402.19, marking a 4.8% gain for the day. This surge has fueled a broader rally in the crypto market, pushing the global market cap above $3 trillion. The price increase has been driven by a combination of technical signals, political developments, and regulatory tailwinds.

The options market reflects a bullish sentiment, with a significant drop in put option values and increased popularity of optimistic trading strategies. The latest rise has fundamentally changed the options market, causing almost every put (sell) option’s value to drop and setting $205 million in liquidations of bearish futures bets under jeopardy. The popularity of bullish strategies such as the “bull put spread,” “bull call spread,” and “bull diagonal spread” implies that industry players are positioning themselves for ongoing upward momentum.

Political and regulatory developments have also positively impacted Bitcoin's price action. Recent changes include the elimination of a 10% duty on imports as part of a trade deal between the US and the UK. Several US states have signed bills allowing the establishment of strategic Bitcoin reserves, rendering legality. Additionally, the Office of the Comptroller of the Currency (OCC) has verified that institutions under their purview can “responsibly” trade cryptocurrencies, and the FDIC has released guidelines allowing banks to retain crypto assets and provide different services to customers.

Technical analysis suggests that Bitcoin could rally towards $130,000-$160,000, supported by a bullish market sentiment and a strong desire to maintain the $100,000 support level. The Bollinger Bands indicator on the weekly chart reveals that Bitcoin has touched the lower band and bounced higher four times since 2022, each time representing the start of a significant upward advance. Furthermore, Bitcoin seems to be breaking out from a declining trendline barrier, a pattern that has before accompanied significant upward movements. Should this trend hold true, pricing objectives between $100,000 and $136,000 are achievable.

Market sentiment has turned bullish, with the Crypto & Fear Index showing a “Greed” value of 65. This suggests that most investors are hopeful and ready to accept more risks. The current price spike in Bitcoin has resulted in around $96 million worth of short contracts being sold, removing more downward pressure on the price. Traders are emphasizing the need to keep $100,000 as support rather than only making fleeting trips above this psychological level. With better fundamentals, more institutional usage, and positive technical signs, Bitcoin seems positioned to test its past all-time high in the near term.