Written by Kevin Buckland and Uncle Banerjee
(Reuters) – Bitcoin soared to a record high of more than $106,000 on Monday after President-elect Donald Trump signaled plans to create a U.S. Bitcoin Strategic Reserve similar to the Strategic Oil Reserve. , sparking enthusiasm among crypto bulls.
the world's largest and best-known cryptocurrency, hit a high of $106,533 and was last trading at $104,493, up 3.1% at 0857 GMT. Small-cap cryptocurrency Ether rose 1.2% to $3,952.
“We're in blue-sky territory here,” said IG analyst Tony Sycamore. “The next number the market expects is $110,000. The pullback that many were waiting for didn't happen because now this news comes in.”
MicroStrategy's inclusion in the tech industry also boosts investor sentiment, likely leading to more capital flowing into software companies turned Bitcoin buyers.
Bitcoin and cryptocurrencies have been thrust into the spotlight as investors bet that the incoming Trump administration will bring about a friendlier regulatory environment and sentiment toward alternative currencies increases. Bitcoin is up 192% for the year.
“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,” President Trump told CNBC late last week. We want to be at the forefront of this.”
When asked if he intended to build a cryptocurrency reserve similar to oil reserves, Trump replied, “Yes, I think so.”
According to data provider CoinGecko, governments around the world held 2.2% of the total supply of Bitcoin as of July, with the United States holding about 200,000 Bitcoin, worth more than $20 billion at current levels. Holds coins.
Other countries that hold large amounts of Bitcoin are China, the United Kingdom, Bhutan, and El Salvador, according to the data site BitcoinTreasuries.
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
“For example, Bitcoin, who can ban it? No one can ban it,” 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. At the very least, we don't think that's likely to happen in the near term. We should,” he said.
“Of course, President Trump's comments raising hopes that plans for the Strategic Reserve are progressing 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 (NASDAQ:) 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 would be added to the Nasdaq 100 index, with the change effective before the market opens on December 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.
Pepperstone's Weston said the market is looking to “take advantage of the rise in MicroStrategy stock prices, with Michael Saylor (MicroStrategy CEO) likely selling stocks and shares, given the impending passive flow from NAS100 inclusion.” “I'm anticipating that it will happen,” he said. Buy more Bitcoins. ”
