Bitcoin’s record rise Bitcoin surged above $107,000 on Monday after President-elect Donald Trump reiterated that he plans to create a US strategic reserve similar to his strategic oil reserve. The excitement of crypto bulls,
MicroStrategy’s inclusion in the tech-heavy Nasdaq 100 index has also boosted investor sentiment, with the potential for more investment in the software company turned Bitcoin buyer.
Bitcoin, the world’s largest and most famous cryptocurrency, hit a session high of $107,148 and was recently at $106,877, up 5.43% from late Friday. The No. 2 digital currency Ether was up 1.85% at $3,975.70.
“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG. “The next figure the market will look for is $110,000. The pullback that many were waiting for did not happen, because now we have this news.
Bitcoin and crypto have surged into the spotlight as investors bet that the incoming Trump administration will usher in a new friendly regulatory environmentTo promote sentiment towards alternative currencies. Bitcoin is up almost 150% in 2024.
“We’re going to do something great with crypto because we don’t want China or anyone else – not just China but others adopting it – and we want to be dominant,” Trump told CNBC Last weekend.
Asked if he planned to create a crypto reserve similar to oil reserves, Trump said: “Yeah, I think so.” He had advocated the same thing earlier this year also.
Governments around the world held 2.2% of the total supply of Bitcoin as of July, according to the data provider. CoinGeckoThe United States holds approximately 200,000 Bitcoins which are worth over $20 billion at current levels.
China, Britain, Bhutan and El Salvador are other countries with large amounts of Bitcoin, data site bitcoin treasuries Showed.
Other countries are also considering cryptocurrency strategic reserves.
Russian President Vladimir Putin said earlier this month that the current US administration is reducing the role of the US dollar as a reserve currency in the global economy by using it for political purposes, prompting many countries to consider alternative assets, including cryptocurrencies. Being forced to turn towards.
“For example, Bitcoin, who can ban it? Nobody,” Putin said.
However, this is doubtful after Federal Reserve Chairman Jerome Powell compared Bitcoin to gold earlier this month. Analysts also say that any such step will take time to implement.
“I think we still need to be cautious on the BTC strategic reserve, and at least consider that this is unlikely to happen in the near future,” said Chris Weston, head of research at Pepperstone.
“Of course, any comments from Trump that provide an increased degree of hope that plans for the strategic reserve are being developed is a clear counterfactual, but it will have consequences that need to be carefully considered and market players Will need to be well informed.”
crypto boost
Bitcoin has increased by more than 50% since the November 5 election, in which Trump was elected along with several other pro-crypto candidates. The total value of the cryptocurrency market has nearly doubled so far in the past year, reaching a record high of more than $3.8 trillion, according to CoinGecko.
Trump – who once labeled crypto a scam – embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet.”
Trump named one this month White House czars for artificial intelligence and cryptocurrencyFormer PayPal executive David Sachs, Trump advisor and close friend of megadonor Elon Musk.
Trump also said he would nominate a pro-crypto Washington lawyer Paul Atkins to head Securities and Exchange Commission,
On Friday, exchange operator Nasdaq said MicroStrategy, led by chief executive Michael SaylorWill be added to the Nasdaq-100 index, this change will take effect before the market opens on December 23.
MicroStrategy, an aggressive investor in the world’s largest crypto asset, has seen its shares rise more than sixfold this year, giving it a market value of about $94 billion. It is now the largest corporate holder of the cryptocurrency.
As part of the Nasdaq 100, investors will buy MicroStrategy shares to mirror the holdings of the broader index, which will increase the value of the stock and allow the company to buy more crypto through debt and equity offerings, said Matthew Dibb, chief investment officer. crypto asset manager Astronaut Capital said.
“This inclusion seems a bit unexpected, but that hasn’t stopped the excitement over what many consider to be the beginning of a looping cycle of capital that could potentially drive up the spot Bitcoin price,” he said.
MicroStrategy shares were up 4.2% on Monday.
