Written by Kevin Buckland and Uncle Banerjee
(Reuters) – Bitcoin hit a record high above $106,000 on Monday after President-elect Donald Trump signaled plans to create a U.S. Bitcoin Strategic Reserve similar to the oil strategic reserve. , sparking enthusiasm among crypto bulls.
Bitcoin, the world's largest and best-known cryptocurrency, hit a high of $106,533 at 1215 GMT and was last trading at $103,917, up 2.6%. Small-cap cryptocurrency Ether rose 0.4% to $3,918.
“We're in blue-sky territory here,” said IG analyst Tony Sycamore. “The next number the market expects is $110,000. The pullback that many were waiting for didn't happen because now this news comes in.”
MicroStrategy's inclusion in the tech-heavy Nasdaq 100 index has boosted investor sentiment, likely leading to more money flowing into software companies that have turned Bitcoin buyers.
Bitcoin and cryptocurrencies have been thrust into the spotlight as investors bet that the incoming Trump administration will bring about a friendlier regulatory environment and sentiment toward alternative currencies increases. Bitcoin has risen 151% over the year.
“We're going to do something great with cryptocurrencies, because we don't want China or anyone else to accept cryptocurrencies, not just China, but other countries as well,” President Trump told CNBC late last week. We want to be at the forefront of this.”
When asked if he intended to build a cryptocurrency reserve similar to oil reserves, Trump replied, “Yes, I think so.”
According to data provider CoinGecko, governments around the world held 2.2% of the total supply of Bitcoin as of July, with the United States holding about 200,000 Bitcoin, worth more than $20 billion at current levels. Holds coins.
Other countries that hold large amounts of Bitcoin are China, the United Kingdom, Bhutan, and El Salvador, according to the data site BitcoinTreasuries.
Other countries are also considering strategic reserves for cryptocurrencies.
Russian President Vladimir Putin said earlier this month that the current U.S. administration's use of the dollar for political purposes is undermining the dollar's role as a key currency in the global economy, and that many countries are turning to alternative assets, including cryptocurrencies. He said that he was forced to turn his attention to
“For example, Bitcoin, who can ban it? No one can ban it,” Putin said.
However, there is some skepticism after Federal Reserve Chairman Jerome Powell likened Bitcoin to gold earlier this month. Analysts also note that it will take time for such measures to be taken.
Chris Weston, head of research at Pepperstone, said: “I think we still need to be cautious about Bitcoin's strategic reserves. At the very least, we don't think that's likely to happen in the near term. We should,” he said.
