Bitcoin hits record high as pro-crypto surge

Bitcoin reached a new all-time high near $81,000, signaling investor optimism as pro-crypto candidates won US elections. The cryptocurrency industry spent $135 million during the election cycle, supporting over 50 candidates across party lines.

Price skyrockets
Open interest in bitcoin futures for prices exceeding $90,000 surged to $2.8 billion on the Deribit exchange. 

Experts note that the options market favors continued momentum, with call options trading at a premium to puts.

“Premium to puts” refers to the difference in value or price between call options and put options in the options market.

In the wake of election results and a Federal Reserve interest rate cut, crypto markets experienced broad gains. Crypto’s biggest bet was on Ohio, where it spent over $40 million to back Republican Bernie Moreno against Democrat Sherrod Brown, resulting in a narrow victory for Moreno.

Ethereum outpaced Bitcoin with a 30% rise, and Solana’s market cap surpassed $100 billion. 

Bitcoin ETFs gained $2.3 billion collectively in three days, bringing their total market cap above $80 billion.

Coinbase saw a 48% increase in shares, benefiting from a pro-crypto Congress, while Robinhood’s crypto unit rose 27%. With pro-crypto policies in motion, including potential changes at the SEC, the future looks promising for the digital currency sector.

Cryptocurrency advocates look forward to the Trump presidency and Republican Congress as they expect friendlier crypto regulations.