Bitcoin surges above $106,000 over the weekend to new record highs
Bitcoin, along with Ethereum, Dogecoin and a price chart
Bitcoin Hits Record High After Trump Hints at U.S. Crypto Reserve
Bitcoin soared past $106,000 on Monday following President-elect Donald Trump’s suggestion of creating a U.S. bitcoin reserve akin to the strategic oil reserve. This bold statement has energized crypto enthusiasts and pushed Bitcoin into uncharted territory, with its price peaking at $106,533 before settling at $104,462—a 3.2% rise for the day. Smaller cryptocurrencies also gained, with Ether increasing by 1.5% to $3,965.
"We’re in uncharted territory," said Tony Sycamore, an analyst at IG. "The market is eyeing $110,000, and the anticipated pullback hasn’t materialized, thanks to this major news."
Investor optimism has also been fueled by the inclusion of MicroStrategy in the Nasdaq 100. The software firm turned major bitcoin investor is expected to attract significant inflows following its listing, boosting sentiment in the crypto market.
Trump Administration’s Pro-Crypto Stance
Bitcoin’s meteoric rise coincides with speculation that the Trump administration will introduce more crypto-friendly regulations. Trump, who had previously dismissed crypto as a “scam,” appears to have reversed course, declaring his commitment to making the U.S. the global leader in digital assets.
"We’re going to do something great with crypto. We want to stay ahead, not just of China but of everyone," Trump said in a CNBC interview last week. When asked about a potential bitcoin reserve, Trump confirmed, "I think so."
The U.S. government already holds nearly 200,000 bitcoins worth over $20 billion at current prices, according to CoinGecko. Other nations like China, the UK, Bhutan, and El Salvador also hold significant crypto reserves, fueling speculation about a growing trend of national cryptocurrency reserves.
Global Crypto Reserve Trends
The idea of a strategic crypto reserve is not unique to the U.S. Earlier this month, Russian President Vladimir Putin criticized the U.S. dollar’s dominance and pointed to cryptocurrencies as an alternative. "Bitcoin—who can prohibit it? No one," Putin stated, hinting at potential diversification into digital assets.
However, skeptics remain. Federal Reserve Chair Jerome Powell compared Bitcoin to gold, emphasizing its volatility and speculative nature. Analysts caution that implementing a crypto reserve would take time and require careful planning.
"We should temper expectations about a BTC reserve happening soon," said Chris Weston, head of research at Pepperstone. "While Trump’s comments are a tailwind for the market, such a move would come with challenges and consequences."
Bitcoin and the Market Boom
Bitcoin has surged over 50% since the Nov. 5 election that secured Trump’s victory. The total cryptocurrency market value has nearly doubled in 2024, reaching a record $3.8 trillion.
Trump’s pro-crypto stance extends beyond Bitcoin. He has named David Sacks, a former PayPal executive, as a White House advisor on artificial intelligence and digital assets. In addition, Trump has announced plans to nominate Washington attorney Paul Atkins, known for his pro-crypto views, as the next SEC chair.
MicroStrategy, the largest corporate holder of Bitcoin, has also seen remarkable gains. Its shares have surged more than six-fold this year, reaching a market value of $94 billion. Following its addition to the Nasdaq 100, analysts expect CEO Michael Saylor to capitalize on the rally by acquiring more Bitcoin.
A Bullish Outlook
With Trump’s embrace of crypto, Bitcoin continues to break barriers, reinforcing its position as a viable alternative asset. As the market awaits further clarity on Trump’s crypto reserve plans, investors remain optimistic about the digital currency’s future trajectory.
