Bitcoin soared to a record high of $106,533 on Monday, driven by President-elect Donald Trump’s suggestions of establishing a U.S. cryptocurrency strategic reserve, similar to the country’s oil reserves.
The leading cryptocurrency rose by 3.2% to $104,462, while ether, the second-largest cryptocurrency, increased by 1.5% to $3,965.
Market optimism was fueled by Trump’s recent remarks about taking a pro-crypto regulatory stance. “We want to lead the world in crypto, not let others like China take the lead,” Trump told CNBC. When asked about creating a crypto reserve, he expressed openness to the idea, generating excitement among investors.
This surge in crypto prices comes as the total cryptocurrency market value reached a record $3.8 trillion, with Bitcoin up 192% this year. Trump’s campaign has been pro-crypto, pledging to make the U.S. the global hub for digital assets. He has also appointed crypto-friendly individuals to key positions, including David Sacks as AI and crypto czar and Paul Atkins to lead the SEC.
Adding to the positive momentum, MicroStrategy, the largest corporate bitcoin holder, was included in the Nasdaq-100 index, boosting expectations of more capital inflows into the crypto market. Shares of the software-turned-crypto firm have skyrocketed six-fold this year, with analysts predicting CEO Michael Saylor may use these gains to acquire more Bitcoin.
However, analysts advise caution, pointing out that establishing a Bitcoin reserve would be a complex and lengthy process. Federal Reserve Chair Jerome Powell compared Bitcoin to gold, emphasizing the need for careful consideration of the potential implications of such a move.
