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(Bloomberg) -- Bitcoin reached an all-time high for a second consecutive day, with traders eyeing the $110,000 price level.

The original cryptocurrency rose as much as 2.1% to $108,315 on Tuesday, before retreating back to its price at the start of the day around $106,000. It has surged more than 150% this year, and traders are increasing bets for further gains in the options market.

“We’ve seen buyers of $110k-$120k and $110k-$125k call spreads in Jan expiry, as well as rolling up of long strikes from $100k/$105k to 120k+ strikes,” said Shiliang Tang, president of crypto principal trading firm Arbelos Markets.

Bitcoin reached the $100,000 milestone less than two weeks ago after President-elect Donald Trump announced his plans to nominate crypto-supporter Paul Atkins as chair of the US Securities and Exchange Commission. Token prices have continued to rise as cryptocurrencies and crypto-related companies like MicroStrategy Inc. have seen greater institutional acceptance.

“Since late last week and the announcement of MSTR being included in the Nasdaq 100, as well as continued BTC open market purchases by MicroStrategy, capital rotation has largely benefited BTC dominance with BTC reaching ATHs and further pulling in more capital from the markets,“ Tang said.

Crypto markets have seen large gains since Trump’s election victory as the industry expects a more friendly regulatory environment, and with Trump taking office next year, these tailwinds could continue.

“What is driving prices, it is the US election dividend, and in 2025 the prospects for the US owning Bitcoin as a strategic reserve asset (likely not priced according to Polymarket which sees it as only 27% chance of happening), geopolitical instability, looser monetary policy — these factors are likely to remain supportive in 2025,” said James Butterfill, head of research at CoinShares.

Other macroeconomic factors like the upcoming interest rate decision on Wednesday are also contributing to recent Bitcoin price movements.

With these factors, the market appears to be entering a new phase of price discovery for Bitcoin, according to Chris Newhouse, director of research at Cumberland Labs.

“We’ve observed relatively neutral funding rates throughout, and derivatives positioning that suggests some hesitancy around new highs,” Newhouse said. “While it’s difficult to say how quickly new catalysts — such as more structured regulation, stable frameworks for compliance, or even official government holdings — will be priced in, the stage is set for a revaluation of crypto’s long-term potential that goes well beyond the recent rally.”