As Bitcoin edges toward $100,000, is this just the start of a larger bull run, or will market volatility derail the momentum for both Bitcoin and altcoins?

BTC shatters records again

Bitcoin (BTC) has been on a tear lately, smashing past milestones like they were minor speed bumps. As of Nov. 21, it’s trading at an eye-watering $97,000 level after hitting an all-time high of $98,350, marking a 3% jump in just 24 hours.

This year has been a dream run for Bitcoin traders, with BTC more than doubling in value and climbing a jaw-dropping 40% in the last two weeks alone, pushing its market cap to an enormous $1.93 trillion.

A big part of this surge can be traced back to Donald Trump’s recent election victory. Investors seem optimistic about the future, as Trump has vowed to make the U.S. a “crypto capital of the planet.”

In response, Bitcoin-focused spot ETFs in the U.S. have seen an influx of institutional money, with more than $4 billion pouring into these funds since the election.

On Nov. 20, U.S. Bitcoin ETFs logged their third straight day of inflows, pulling in $773.47 million. Over the past three trading days, the total inflows into these ETFs exceeded $1.8 billion, according to CoinGlass data.

This level of activity reflects a growing institutional appetite for Bitcoin, fueled by hopes of regulatory clarity and increasing accessibility to crypto-focused financial products.

So, where does this leave Bitcoin? Crossing the $100,000 mark seems more like a “when” rather than an “if,” as institutional interest, ETF inflows, and market enthusiasm continue to build momentum. But as Bitcoin races ahead — what about altcoins?

How Bitcoin options are supercharging its surge

While spot Bitcoin ETFs have played a massive role in its recent surge, options trading on these funds has introduced a new layer of excitement and influence on the market.

A standout example is BlackRock’s iShares Bitcoin Trust ETF (IBIT), which debuted its options contracts on Nov. 19. The results were nothing short of spectacular.

By the end of its first trading day, IBIT options had amassed nearly $1.9 billion in notional exposure through 354,000 contracts — 289,000 call options and 65,000 put options — as reported by Bloomberg ETF analyst James Seyffart.

UPDATE: Final tally of $IBIT's 1st day of options is just shy of $1.9 billion in notional exposure traded via 354k contracts. 289k were Calls & 65k were Puts. That's a ratio of 4.4:1. These options were almost certainly part of the move to the new #Bitcoin all time highs today pic.twitter.com/IN3s9hajJ2

— James Seyffart (@JSeyff) November 19, 2024

The overwhelming interest in call options — nearly 80% of IBIT’s options activity on the first day — indicates strong bullish sentiment among market players.

To put this in perspective, this activity level dwarfs the $363 million achieved on the first day of trading for the ProShares Bitcoin Strategy ETF (BITO), the first Bitcoin futures-based ETF in the U.S.

Another Bloomberg analyst, Eric Balchunas, highlighted the unprecedented scale of IBIT’s launch, calling the $1.9 billion exposure “unheard of” for day one.

$1.9b is unheard of for Day One. For context, $BITO did $363m and that's been around for four years. And also this is with 25,000 contract position limits. That said, $1.9b isn't quite big dog level yet tho, eg $GLD did $5b today, but give it a few more days/weeks. https://t.co/nAr2rracjb

— Eric Balchunas (@EricBalchunas) November 19, 2024

Moreover, BlackRock’s IBIT continued to dominate, generating another $1.9 billion in notional exposure on Nov. 20. Bloomberg ETF analyst James Seyffart noted in a tweet that IBIT accounted for an overwhelming 97% of the total options volume across all Bitcoin spot ETFs that day.

The spot #bitcoin ETF options volume breakdown yesterday was HEAVILY tilted towards $IBIT. Ironically IBIT traded almost the same as its first day right around $1.9 billion in notional exposure but it took 97% of the volume. Hopefully this evens out a bit with arbs/quants etc pic.twitter.com/OtNSGLVbRn

— James Seyffart (@JSeyff) November 21, 2024

To make things even more intense, Grayscale has also stepped into the options arena, announcing that its Bitcoin spot ETF products ($GBTC and $BTC) will be available for options trading starting today, i.e., Nov. 21.

Bitwise’s Bitcoin ETF is also following suit, offering similar options and products designed to help investors hedge their positions and execute advanced strategies.

$100K BTC: Are we there yet?

Bitcoin is sitting on the brink of an unprecedented milestone: $100,000. With its current price hovering around $96-$97k, it feels like the crypto giant is merely inches away from crossing into six-figure territory.

A Shanghai court recently clarified that it’s not illegal for individuals to own crypto, even though businesses are restricted from engaging in crypto-related activities.

Judge Sun Jie from the Shanghai Songjiang People’s Court shared this perspective via an article on the Shanghai High People’s Court’s official WeChat account.

China has historically been a wildcard in crypto markets. Whenever there’s news of acceptance or clarity from such a massive market, global confidence in Bitcoin spikes.

The timing couldn’t be better, as this announcement coincides with Bitcoin’s record price surge, sending a strong signal that crypto adoption is inching forward even in restrictive environments.

Meanwhile, in the U.S., Bitcoin ETFs have shattered expectations.

Bloomberg’s Eric Balchunas highlighted that the total assets under management for Bitcoin ETFs have reached a staggering $104 billion, boosted by year-to-date inflows of $30 billion — double initial projections.

Speaking of "100" milestones, the US bitcoin ETFs hit $100b in assets (altho more like $104b given the price surge overnight) w/ YTD flows flirting with $30b (double our estimate). They're now 97% of way to passing Satoshi as biggest holder and 82% of way to passing gold ETFs. pic.twitter.com/Y3070yW7Jx

— Eric Balchunas (@EricBalchunas) November 21, 2024

To put this into perspective, these ETFs are now 97% of the way to surpassing Satoshi Nakamoto as the largest Bitcoin holder and 82% of the way to overtaking gold ETFs.

Adding to the bullish sentiment, U.S. Senator Cynthia Lummis has been advocating for Bitcoin on a national level. Lummis proposed creating a strategic Bitcoin reserve earlier this year and has since linked Bitcoin to strengthening the U.S. dollar and addressing national debt.

If only there was a way to dig our nation out of debt while ensuring the strength of the U.S. dollar. Oh wait. #BITCOINAct

— Senator Cynthia Lummis (@SenLummis) November 19, 2024

Her latest tweet hinted at Bitcoin as a potential solution to the national debt crisis, wrapped in the tagline “#BITCOINAct.”

However, Miles Deutscher pointed out an intriguing trend — whales, the large Bitcoin holders, are aggressively selling while retail investors, buoyed by ETF flows, are snapping up BTC.

Very interesting $BTC data.#Bitcoin whales are aggressively selling, whilst retail (spot ETFs) are aggressively buying.

ETF flows must remain strong or else long-term holder sell pressure may catch up to the market. pic.twitter.com/oZSkCQT5mv

— Miles Deutscher (@milesdeutscher) November 21, 2024

This tug-of-war between whales and retail traders introduces some uncertainty. For Bitcoin to maintain its momentum and break $100,000, ETF inflows need to keep pace. If long-term holders continue to sell and ETF buying slows, the market could face turbulence.

Still, the bullish momentum is undeniable, and BTC could break past $100,000 at any time. However, nothing in the crypto market comes with a guarantee, so brace yourselves for sudden changes.

Will altcoins steal the spotlight?

As Bitcoin marches toward the $100,000 milestone, the big question is: what happens next?

Crypto markets are known for their cycles, where Bitcoin often takes the lead before passing the baton to altcoins.

A tweet from prominent crypto analyst Michaël van de Poppe outlines what could unfold in the coming days — a dramatic price shakeout in Bitcoin, a significant drop in altcoins, and then the start of an explosive altseason.

The theory still stands on $BTC.

We'll have a massive sweep/flash crash downwards causing #Altcoins to drop massively.

From that point –> rotation game happens and we're having a multi-month altseason.

Before that happens, $100K per one Bitcoin is around the corner. pic.twitter.com/LxRzxwMPaB

— Michaël van de Poppe (@CryptoMichNL) November 21, 2024

The theory suggests Bitcoin could experience a sharp pullback—a sudden drop in price—after crossing the $100K threshold. This isn’t as far-fetched as it might sound.

Historically, Bitcoin has seen similar corrections during periods of rapid growth. For instance, in the 2021 bull run, Bitcoin faced multiple pullbacks of 20–30% before continuing its upward trajectory.

Such corrections often shake out short-term traders while providing entry points for new investors, fueling the next leg of the rally.

Given the current bullish momentum, a pullback may serve as a pressure release for the market. However, with strong institutional inflows through ETFs and retail demand holding firm, any potential drop is likely to be temporary.

The larger narrative—the growing adoption of Bitcoin as a mainstream asset—remains intact.

Altcoins often follow Bitcoin’s lead, but they also have their own dynamics. If Bitcoin undergoes a flash crash, altcoins could experience an even sharper decline.

This happens because altcoins typically have lower liquidity and higher volatility compared to Bitcoin. However, such drops are often the precursor to an altseason — a period when altcoins outperform Bitcoin in terms of percentage gains.

The idea of a multi-month altseason isn’t new. Past market cycles show that altcoins tend to rally after Bitcoin’s dominance stabilizes or declines.

For example, in early 2021, Bitcoin reached its then-all-time high of $64,000 in April, after which its dominance dropped from over 60% to below 50%.

This shift marked the beginning of a massive altcoin rally, with Ethereum (ETH), Binance Coin (BNB), and smaller altcoins hitting record highs in the months that followed.

The same pattern could emerge again. Bitcoin’s dominance is currently high, buoyed by institutional demand and the spotlight on ETFs.

Once Bitcoin crosses $100,000 and its price stabilizes, investors may start rotating their gains into altcoins, sparking a new wave of growth in the broader crypto market.

While optimism is high, the risks are just as real. The crypto market’s volatility can lead to dramatic swings, making a balanced and well-researched approach essential.

Whether you’re eyeing Bitcoin or planning to dive into altcoins, the coming days could offer opportunities—but trade wisely and never invest more than you can afford to lose.