Bitcoin hit a record high on Monday, surpassing $106,000, following comments from President-elect Donald Trump about establishing a U.S. bitcoin strategic reserve. The proposal, similar to the country’s strategic oil reserve, has fueled excitement among crypto investors.
According to Geo News, Bitcoin touched $106,533 before slightly retreating to $104,462, marking a 3.2% increase. Smaller cryptocurrency Ether also gained 1.5%, trading at $3,965.
“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG. “The market’s next target is $110,000. The pullback many expected didn’t happen, thanks to the recent news.”
Investor confidence also grew with MicroStrategy’s inclusion in the Nasdaq 100 index, likely attracting more investments into the company, which holds substantial Bitcoin reserves.
Cryptocurrencies have been gaining momentum as many believe the Trump administration will adopt a crypto-friendly regulatory stance. Bitcoin has surged 192% this year, reflecting growing interest in alternative assets.
Trump recently expressed his intent to make the U.S. a leader in the crypto space. “We’re going to do something great with crypto. We don’t want China or anyone else taking the lead,” he told CNBC. When asked about creating a Bitcoin reserve, Trump replied, “Yeah, I think so.”
As of July, global governments held 2.2% of Bitcoin’s total supply, with the U.S. owning nearly 200,000 Bitcoins, worth over $20 billion at current prices, according to CoinGecko. Other countries, including China, the UK, Bhutan, and El Salvador, also have significant Bitcoin reserves, as reported by BitcoinTreasuries.
The idea of cryptocurrency reserves is spreading, with nations like Russia also showing interest. Russian President Vladimir Putin criticized the U.S. for reducing the dollar’s global influence, pushing countries to explore alternative assets like cryptocurrencies. “Bitcoin, for example, who can prohibit it? No one,” Putin stated.
Despite the optimism, some experts remain cautious. Federal Reserve Chair Jerome Powell recently compared Bitcoin to gold and warned that implementing such initiatives could take time. Analysts continue to urge investors to watch for potential challenges ahead.
