Bitcoin soared to a new record on Monday, surpassing $106,000, after President-elect Donald Trump proposed the creation of a U.S. Bitcoin strategic reserve, mirroring the country’s strategic oil reserve.
The world’s largest and most recognised cryptocurrency reached an all-time high of $106,533 before settling at $104,462, up 3.2%.
Meanwhile, smaller cryptocurrency Ether gained 1.5%, trading at $3,965, according to News.az citing Reuters.
“We’re in blue sky territory,” commented Tony Sycamore, an analyst at IG. “The next target for the market will likely be $110,000. The pullback many were anticipating didn’t materialise due to this recent news.”
Investor optimism also surged following the inclusion of MicroStrategy into the Nasdaq 100 index.
The move is expected to drive additional investments into the software firm, which has become a prominent Bitcoin buyer.
The crypto market has been buoyed by expectations of a more favourable regulatory stance from the incoming Trump administration.
This optimism has propelled Bitcoin’s value to unprecedented levels, marking a 192% increase since the start of the year.
Governments worldwide have shown growing interest in Bitcoin. As of July, states collectively held 2.2% of the cryptocurrency’s total supply, according to CoinGecko. The U.S. leads with nearly 200,000 bitcoins valued at over $20 billion at current prices.
Other nations are also exploring the potential of cryptocurrency reserves.
China, the UK, Bhutan, and El Salvador are notable holders of significant Bitcoin quantities, according to Bitcoin Treasuries data.
As Bitcoin continues its meteoric rise, discussions around national crypto reserves could signal a shift in global financial strategies, further elevating the cryptocurrency’s profile.
Trump recently announced that David Sacks, former PayPal Chief Operating Officer, has been appointed as his “White House A.I. & Crypto Czar”, signaling a transformative approach to U.S. technology and cryptocurrency policy.
Trump revealed the news on his platform, Truth Social, emphasizing Sacks’ role in crafting a clear legal framework for the cryptocurrency industry.
“He will work on a legal framework so the crypto industry has the clarity it has been asking for and can thrive in the U.S.,” Trump stated, without clarifying whether “czar” is an official title.
