Bitcoin soared past $106,000 on Monday, achieving a record high after President-elect Donald Trump suggested creating a US bitcoin reserve. This announcement ignited optimism among cryptocurrency enthusiasts, further boosting the digital currency’s value.
Bitcoin, the world’s largest cryptocurrency, peaked at $106,533 before settling at $104,462, marking a 3.2% daily increase. Similarly, Ether, another major cryptocurrency, rose by 1.5%, reaching $3,965.
Investor confidence improved significantly after MicroStrategy’s inclusion in the Nasdaq 100 index. This move is expected to bring higher inflows into the software firm, which has transitioned to bitcoin investments.
Additionally, Trump’s pro-crypto rhetoric during his campaign has attracted attention. Last week, he stated, “We’re going to do something great with crypto because we want to lead globally.”
When asked if a bitcoin reserve similar to the US oil reserve was being considered, Trump replied, “Yeah, I think so.”
Globally, governments are exploring cryptocurrency reserves. According to CoinGecko, countries currently hold 2.2% of bitcoin’s total supply. The United States alone owns approximately 200,000 bitcoins, valued at over $20 billion.
Other nations, such as China, the UK, Bhutan, and El Salvador, also hold significant bitcoin reserves. Recently, Russian President Vladimir Putin criticized the US dollar’s dominance and praised bitcoin’s decentralized nature. He remarked, “Who can prohibit bitcoin? No one.”
However, skepticism persists among financial experts. Federal Reserve Chair Jerome Powell compared bitcoin to gold, emphasizing that establishing a reserve would require significant time.
Bitcoin’s price has surged over 50% since Trump’s November 5 election victory. The cryptocurrency market’s total value has nearly doubled this year, surpassing $3.8 trillion, according to CoinGecko.
Trump, once a vocal crypto critic, now champions it as a top priority. He recently appointed former PayPal executive David Sacks as White House AI and cryptocurrency czar, reinforcing his commitment to advancing digital assets. Bitcoin is the world’s largest cryptocurrency, which peaked at $106,533 before settling at $104,462, marking a 3.2% daily increase. Bitcoin’s price has surged over 50% since Trump’s November 5 election victory.
