Bitcoin gained its reputation by being “boring” and reliable. Its limited functionality—primarily “buy and hold”—made it valuable, like gold or corn. Developers intentionally avoided rapid changes to ensure stability, attracting traders seeking a robust and predictable network. Even as other cryptocurrencies experienced hacks and innovations, Bitcoin maintained its dominance by sticking to its proven formula.
Recently, Bitcoin has embraced change. Developers are building new tools on its blockchain, while Wall Street introduces financial instruments like exchange-traded funds (ETFs) and leveraged bets. January saw the launch of spot Bitcoin ETFs, and options for these ETFs debuted on major exchanges like Nasdaq and NYSE, expanding access for retail and institutional traders.
U.S.-issued spot Bitcoin funds now manage over $100 billion in assets. Inflows hit $3.1 billion last week alone, bolstered by September’s U.S. interest rate cuts. Record activity in Bitcoin futures on CME and options on BlackRock’s IBIT ETF highlight increasing demand for long-term Bitcoin exposure.
Galaxy Digital noted significant trading in IBIT options, which saw 353,716 contracts traded on launch day. CEO Mike Novogratz cautioned about high leverage in the market, suggesting volatility ahead. Expiring Bitcoin options worth $9 billion on Deribit could amplify price swings.
Bitcoin’s current price of $95,000 reflects a 40% post-election surge. Galaxy Digital predicts strong investor confidence in Bitcoin’s long-term growth, signaling bullish momentum despite potential near-term corrections.
