Bitcoin's record rally topped $107,000 on Monday, after President-elect Donald Trump reiterated his plans to create a U.S. Bitcoin Strategic Reserve similar to the Oil Strategic Reserve. This sparked enthusiasm among currency bulls.
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, the world's largest and best-known cryptocurrency, rose to a session high of $107,148 and was most recently at $106,877, up 5.43% since late Friday. The second-largest digital currency, Ether, rose 1.85% to $3,975.70.
“We're in blue-sky territory here,” said IG analyst Tony Sycamore. “The next number the market is looking for is $110,000. The pullback that many were waiting for didn't happen because now we have this news.”
Bitcoin and cryptocurrencies have been thrust into the spotlight as investors bet the incoming Trump administration will introduce a more friendly regulatory environment and sentiment toward alternative currencies grows. Bitcoin will rise by about 150% in 2024.
“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. We want to be at the forefront of that.” President Trump told CNBC Late last week.
Asked if he intended to build a cryptocurrency reserve similar to oil reserves, Trump replied, “Yes, I think so.” He claimed the same earlier this year.
As of July, governments around the world held 2.2% of the total Bitcoin supply, according to the data provider. CoinGeckoThe United States holds about 200,000 Bitcoins worth more than $20 billion at current levels.
Other countries that hold large amounts of Bitcoin are China, the UK, Bhutan, and El Salvador, a data site. bitcoin treasury showed.
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
“Bitcoin, for example, who can ban it? No one,” 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, or at least think it's unlikely to happen in the near term.'' ” he said.
“Of course, President Trump's comments raising hopes that plans for the Strategic Reserve are making progress are a clear boost, but this will have consequences that will need to be carefully considered and well communicated to market participants. .”
crypto boost
Bitcoin has soared more than 50% since the Nov. 5 election, which Trump won along with a number of other pro-crypto candidates. According to CoinGecko, the total value of the cryptocurrency market has nearly doubled over the past year, reaching a record of more than $3.8 trillion.
Trump, who once branded cryptocurrencies a scam, pledged during his campaign to embrace digital assets and make the United States “the crypto asset of the planet.”
President Trump this month named former PayPal executive David Sachs, a close friend of Trump adviser and mega-donor Elon Musk, as White House czar of artificial intelligence and cryptocurrencies.
Trump also said he would nominate pro-cryptocurrency Washington lawyer Paul Atkins to head the Securities and Exchange Commission.
On Friday, exchange operator Nasdaq announced that MicroStrategy, led by CEO Michael Saylor, will be added to the Nasdaq 100 index, with the change effective before the market opens on Dec. 23.
MicroStrategy, the world's largest active investor in crypto assets, has seen its stock price soar more than sixfold this year, reaching a market value of nearly $94 billion. The company is currently the largest corporate holder of cryptocurrencies.
As part of the Nasdaq 100, investors can purchase MicroStrategy shares to reflect broader index holdings, thereby increasing the value of the stock and purchasing more cryptocurrencies through bond and equity issuance. Chief Investment Officer Matthew Dibb said. said Mr. Astronaut Capital, a crypto asset management company.
“While this addition seems a bit unexpected, there is still excitement in what many believe is the beginning of a capital circulation cycle that could potentially push Bitcoin's spot price higher,” he said. said.
MicroStrategy shares rose 4.2% on Monday.
