Bitcoin continues to record significant price leaps following a 19.28% gain in the past seven days. The premier cryptocurrency is replicating another bullish Q4 particularly boosted by multiple factors as it gradually approaches the $100,000 price target. However, crypto analyst Ali Martinez has revealed a vital condition for the market bulls to sustain the current momentum.

Why $91,900 Is Crucial To Bitcoin

Donald Trump’s electoral victory coupled with recent Federal Reserve rate cuts have spurred Bitcoin to multiple all-time highs over the last two weeks. On Thursday, the crypto market leader hit a new peak of $93,434 and has since retraced by 2.25% to remain in consolidation above $91,000. 

Commenting on Bitcoin’s future price movement, Ali Martinez shared that the TD Sequential, a trading indicator for identifying trend exhaustion and market reversals, had recently flashed a sell signal indicating that BTC may be due for some significant price recorrection.

However, the analyst explains the leading cryptocurrency can avoid such a downturn if the market bulls ensure a daily close above $91,900. Martinez states that holding this price level would allow Bitcoin to maintain its current trajectory and potentially climb to $100,680.

Bitcoin To Fall Or Not? 

Martinez’s predictions counter wider beliefs that the premier cryptocurrency is set for a re-correction following a prolonged price rally that has lasted since early October. 

In a separate post on X, the analyst notes the Bitcoin Long/Short ratio currently stands at 0.79 with 55.94% of traders opening short positions in anticipation of a price fall. Bitcoin’s relative strength index also remains above 70, signaling it’s in the overbought zone and is due for a price reversal. However, the asset’s price is also well above its 20-SMA showing potential for a trend continuation. 

Moreover, the impending return of Trump to the White House which is expected to usher in new pro-crypto appointments in terms of agencies such as SEC and CFTC also continues to spur investors who will now anticipate a less regulatory hostile regime. This factor, combined with the ongoing impressive performance of the Bitcoin spot ETFs which have now accumulated total inflows of $6.18 billion in Q4 2024. Therefore, the premier cryptocurrency may remain yet resilient reaching another all-time high in no time.

At the time of writing, Bitcoin trades at $91,166 reflecting a 2.10% in the past day. Meanwhile, the asset’s trading volume is down by 18.88% and valued at $68.54 billion.

Featured image from Medium, chart from Tradingview

A financial research company analyst expects Bitcoin to continue its price surge until year-end as it rides on bullish technical indicators and increasing market demand.

In a CNBC interview uploaded via YouTube, Fundstrat’s Tom Lee shared his thoughts on Bitcoin’s continuing dominance in the context of incoming US President Donald Trump’s convincing election.

Bitcoin’s price is currently trading at the $91k level, and Lee expects that the top digital asset will consolidate near the $90,000 level, with its technicals setting it up for a sustained run.

According to technical analysts, Bitcoin is on its fifth Elliot Wave cycle, indicating an expected rise, with a price of $130k to $145k by year-end. According to Lee, Bitcoin can easily target this price with increasing market volume and a friendlier monetary policy from the Federal Reserve.

Lee Explains Why Bitcoin’s Rally Continues

In a CNBC interview, Lee explained that increasing market demand and solid technical indicators support Bitcoin’s recent price surge. He noted that Bitcoin is now in a consolidation phase and will likely stay at the $90,000 level.

Bitcoin’s price, he says, aligns with the price action of other risk assets. But Bitcoin is different because it’s more stable and shows resilience. According to Lee, Bitcoin thrives in a risk-taking environment, and the political and economic landscape favors the digital asset.

Major indices like the S&P 500 and NASDAQ have dipped on support levels, which offers a solid foundation for future growth. The same trend is happening for Bitcoin, suggesting that the asset is primed for another surge.

Lee also linked Bitcoin’s price performance with other market trends, including a “Trump trade.” He argued that Trump’s election was key in boosting the asset’s price. Then, there’s the recent confirmation of establishing the D.O.G.E., which aimed to promote efficiency and deregulation in the government.

BTC As A Strategic Reserve Asset

Lee pointed out that the proposals to make Bitcoin a strategic asset are also helping boost its market volume and price. Bitcoin can serve as a hedge against macroeconomic uncertainties, including inflation. He added that the current debates on the direction of US monetary policies, like cutting interest rates, are helping the crypto’s price.

Meanwhile, there’s an ongoing discussions on who will be the next Treasury secretary, which can also influence prices. Howard Lutnick of Cantor Fitzgerald is one of the leading names considered, advocating for Bitcoin’s legitimacy.

Increasing Retail And Institutional Support Pushing Bitcoin’s Price

Lee also suggested increasing support among retail and institutional investors, driving Bitcoin’s price. Based on data by CryptoQuant, Coinbase’s premium index increased at the rally’s start, suggesting surging interest from US retail investors. However, these numbers have dipped recently, reflecting a slowdown in retail action.

For Coosh Alemzadeh, Bitcoin’s current price chart and technicals suggest future growth. He added that Bitcoin is at its fifth wave of the Elliot Wave cycle, which is at the peak of a price surge. Based on his projection, BTC’s price can reach $145k by year-end.

Featured image from SCMP, chart from TradingView

Grayscale Investments has filed an updated prospectus for its Bitcoin Covered Call ETF (exchange-traded fund).

 It signals a swift action after the Commodity Futures Trading Commission (CFTC) approved the listing of spot Bitcoin ETF options.

Grayscale Pursues Bitcoin Covered Call ETF

The fund, which will offer exposure to Bitcoin and the Grayscale Bitcoin Trust (GBTC), aims to generate income through actively managed call and put options on Bitcoin exchange-traded products (ETPs).  The prospectus was originally filed with the US Securities and Exchange Commission (SEC) in January 2024.

According to the filing, the ETF will achieve its objectives by providing exposure to GBTC. Beyond that, it will also employ a covered call strategy. This means it will sell call options to generate income while holding Bitcoin or GBTC as collateral. 

“The fund seeks to achieve its investment objective primarily through actively managed exposure to Grayscale Bitcoin Trust (GBTC) and the purchase and sale of a combination of call and put option contracts that utilize GBTC as the reference asset,” the January filing read. 

James Seyffart, an ETF analyst at Bloomberg Intelligence, commented on the development. In his opinion, Grayscale is capitalizing on the approval for Bitcoin ETF options. 

“Grayscale wasting no time after BTC ETF options approval. They’ve filed an updated prospectus for their Bitcoin Covered Call ETF (no ticker yet). The fund will offer exposure to GBTC and BTC while writing and/or buying options contracts on Bitcoin ETPs for income,” Seyffart remarked.

It comes after the US Securities and Exchange Commission’s (SEC) approval of options trading for spot Bitcoin ETFs. This regulatory milestone, announced last month, allows ETF issuers to integrate options strategies into their Bitcoin-focused funds. Among other benefits, this opens up new avenues for investment. 

The Office of the Comptroller of the Currency (OCC) is also preparing to launch options trading on the Bitcoin ETF. Eric Balchunas, another ETF industry expert, emphasized the significance of the CFTC’s decision. He said it cleared the way for more complex Bitcoin investment products.

With options now on the table, funds like Grayscale’s Covered Call ETF can cater to investors seeking yield in a volatile asset class. 

Grayscale’s ETF Strategy on a Broader Context

Grayscale’s filing for the Covered Call ETF is part of its larger push to establish itself as a leader in crypto ETFs. In October, the SEC acknowledged Grayscale’s application to convert its Digital Large Cap Fund into an ETF, which demonstrated the company’s commitment to diversifying its offerings. 

Additionally, Grayscale has been working with NYSE Arca to secure approval to list a range of ETFs, including those focused on digital assets beyond Bitcoin. These efforts reflect the firm’s strategy to bring institutional-grade financial products to the cryptocurrency market. 

The ability to integrate options trading into Bitcoin ETFs could mark a turning point for the crypto industry. Covered call strategies, which involve selling options on held assets, allow funds to generate steady income — a feature that may attract a broader spectrum of investors. 

Grayscale’s swift response to these developments and push for a Bitcoin Covered Call ETF reflects its agility in navigating the growing regulatory environment. By filing an updated prospectus for its Bitcoin Covered Call ETF, the firm positions itself to take advantage of the growing interest in options-based crypto investments. 

If approved, the Bitcoin Covered Call ETF could pave the way for a new generation of investment products that merge TradFi strategies with novel digital assets. With regulatory frameworks beginning to accommodate such innovations, the crypto investment space is poised for significant growth.

Nevertheless, the firm’s Ethereum ETF remains affected by redemptions, evidenced by five consecutive days of outflows since November 12.