Bitcoin’s price performance takes off in the same high-speed manner as a SpaceX rocket launch. The spark? Wall Street developed both a newfound interest and innovative financial instruments that created a double impact. Nasdaq has introduced options trading for Bitcoin ETFs including BlackRock’s iShares Bitcoin Trust (IBIT) in its recent market move. The market transformation has brought professional-grade risk-hedging and investment tools to Bitcoin traders, enabling them to shift to more stable and controlled trading.
The discussion about whales, in particular, needs attention. MicroStrategy is buying Bitcoin as if it were Black Friday and now owns more than 200,000 BTC. This year, Bitcoin ETFs have attracted more than $4 billion in investments, which has caused professional pension fund managers to view Bitcoin as digital gold 2.0, instead of internet funny money.
But why now? The growth cycle of Bitcoin has revolved around three essential factors: institutional involvement, regulatory definition, and market confidence that it acts like an inflation shield during economic downturns.