Bitcoin reached a record high above $106,000 on Monday following comments from President-elect Donald Trump, who suggested plans to establish a U.S. bitcoin strategic reserve similar to the nation’s strategic oil reserve, fueling optimism among crypto investors.
According to a report by Geo News on Monday, the world’s largest and most well-known cryptocurrency touched $106,533 before pulling back slightly to $104,462, up 3.2%. Smaller rival ether rose 1.5% to $3,965.
“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG. “The next target for the market is $110,000. The expected pullback didn’t happen, largely due to the recent news.”
Investor sentiment was further bolstered by the inclusion of MicroStrategy in the Nasdaq 100 index, likely leading to increased inflows for the software company-turned-bitcoin buyer.
Bitcoin and the broader cryptocurrency market have been gaining attention as investors anticipate that the incoming Trump administration will foster a more favorable regulatory environment, further boosting interest in alternative currencies. Bitcoin has surged 192% this year.
“We’re gonna do something great with crypto because we don’t want China or anyone else— not just China, but others are embracing it— and we want to lead,” Trump told CNBC last week.
When asked about the possibility of creating a bitcoin reserve similar to oil reserves, Trump responded, “Yeah, I think so.”
As of July, governments worldwide held 2.2% of bitcoin’s total supply, with the U.S. owning nearly 200,000 bitcoins worth over $20 billion at current prices, according to data from CoinGecko. China, the UK, Bhutan, and El Salvador also possess significant bitcoin holdings, according to BitcoinTreasuries data.
Other nations are reportedly considering establishing cryptocurrency strategic reserves as well.
Russian President Vladimir Putin recently claimed that the current U.S. administration is diminishing the role of the dollar as the global reserve currency, prompting many countries to seek alternative assets, including cryptocurrencies.
“Bitcoin, for example, who can prohibit it? No one,” said Putin.
However, some remain skeptical. Federal Reserve Chair Jerome Powell compared bitcoin to gold earlier this month, and analysts caution that any such initiative would take time to materialize.
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