Bitcoin skyrockets past $106K following Trump’s hints at creating a U.S. cryptocurrency strategic reserve.
Bitcoin Reaches Record $106K on Reserve Speculation
Bitcoin surged to a historic high of $106,533 on Monday, driven by talks of a U.S. strategic crypto reserve. President-elect Donald Trump suggested a cryptocurrency reserve similar to the nation’s oil reserve, sparking enthusiasm in the market. BTC ended trading at $105,688, while ether climbed 3% to $4,014.
JUST IN: #Bitcoin sets a new ATH of $106,260 📈
Market Analysts Anticipate Further Bitcoin Gains
Experts predict BTC could rally to $110,000 amid the latest policy hints from the President-elect. Tony Sycamore, an analyst at IG, noted the resilience in BTC’s rally. “The pullback people expected didn’t happen due to this news,” he said.
Trump Advocates for U.S. Crypto Leadership
Trump emphasized plans to make the U.S. a global leader in cryptocurrency during a CNBC interview last week.
“We’re gonna do something great with crypto. We don’t want others, not just China, to surpass us,” Trump said. He also confirmed exploring a crypto reserve.
Global Push Toward Crypto Reserves
Other countries, like Russia, are also considering strategic reserves for cryptocurrencies, underscoring a global shift. Russian President Vladimir Putin criticized U.S. dollar dependency, advocating for alternatives like Bitcoin. “Who can prohibit Bitcoin? No one,” he stated earlier this month.
Skepticism Around Bitcoin’s Utility Persists
Not everyone is optimistic; Federal Reserve Chair Jerome Powell likened Bitcoin to gold and dismissed its utility as a currency.
“People aren’t using it for payments or as a store of value. It’s highly volatile,” Powell remarked.
Cryptocurrency Market Reaches New Milestones
Bitcoin’s price has surged over 50% since Trump’s election, with the total market cap nearing $3.8 trillion. Pro-crypto appointments in Trump’s administration include David Sacks, an advocate for cryptocurrencies, and Paul Atkins, SEC nominee.
MicroStrategy’s Role in the Bitcoin Boom
MicroStrategy, the largest corporate Bitcoin holder, continues to benefit from the crypto rally, gaining a Nasdaq-100 listing. The company’s aggressive Bitcoin acquisitions have driven its market value to nearly $94 billion after a six-fold surge in its share price.
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