Bitcoin surged to an all-time high above $106,000 on Monday, fueled by President-elect Donald Trump’s suggestion that the U.S. may establish a bitcoin strategic reserve, similar to its strategic oil reserve. This news sent crypto enthusiasts into a frenzy, with Bitcoin reaching a peak of $106,533 before stabilizing at $104,462, up 3.2% on the day. Ethereum also gained 1.5%, trading at $3,965.
“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG, referring to the soaring prices. “The next figure the market will be looking for is $110,000.”
Trump’s remarks about building a strategic crypto reserve were a significant catalyst for the rally. “We’re gonna do something great with crypto… We want to be the head,” Trump told CNBC late last week, signaling a more favorable regulatory stance toward digital assets.
Bitcoin has gained 192% this year, reflecting growing investor optimism that the incoming Trump administration will create a more crypto-friendly environment. Bitcoin’s surge follows Trump’s embrace of digital assets during his campaign, where he pledged to make the U.S. the “crypto capital of the planet.”
In addition to Trump’s remarks, investor sentiment was buoyed by the upcoming inclusion of MicroStrategy, a major corporate bitcoin holder, into the Nasdaq 100 index. The software firm’s heavy investment in Bitcoin has driven its market value to nearly $94 billion, sparking further speculation that its inclusion will lead to more crypto-driven market flows.
Although the idea of a U.S. bitcoin reserve remains speculative, it has sparked international discussions. Russian President Vladimir Putin recently noted that countries are increasingly turning to cryptocurrencies, including Bitcoin, as an alternative to traditional assets like the U.S. dollar.
Despite the enthusiasm, analysts caution that any move toward a bitcoin reserve will take time. “I think we still need to be cautious,” said Chris Weston, head of research at Pepperstone. “Any such move would need to be carefully considered and well telegraphed to market players.”
With Bitcoin up more than 50% since the November 5 election, the total cryptocurrency market value has soared to over $3.8 trillion, setting new records.
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