Investing.com — Bitcoin rises to record high on Monday as investors focus on strategic reserve outlook under President-elect Donald Trump, while MicroStrategy's addition to Nasdaq 100 also upbeat This spurred a new perspective.
The world's largest cryptocurrency reversed its weekend selloff and pushed further above the $100,000 mark after President Trump resurfaced the idea of a Bitcoin reserve.
The addition of MicroStrategy Incorporated (NASDAQ:) to the index also boosted sentiment. It's a move that could attract even more money to the world's largest corporate Bitcoin holder.
rose more than 3% to a record high of $106,569.4, trading at $104,977.1 by 12:47 ET.
On-chain data showed a flurry of transactions by major cryptocurrency holders, known as whales, were moving Bitcoin away from major exchanges. Such moves typically limit the supply of cryptocurrencies on the open market, prompting further price increases.
President Trump floats Bitcoin Strategic Reserve concept
President Trump said in an interview with CNBC last week that he may be planning to build a virtual currency reserve similar to the Strategic Petroleum Reserve.
The president-elect reiterated his plans to make the United States the world's cryptocurrency leader, insisting that other countries, including China, are also embracing the technology.
Mr. Trump campaigned on the promise of easing regulations on cryptocurrencies, and his selection of key cabinet members and regulators included pro-cryptocurrency sentiments.
But analysts have questioned how far his Bitcoin reserve plan will go, given that government purchases of cryptocurrencies will likely require increased fiscal spending.
With a Republican-led Congress planning to reduce the U.S. budget deficit, such a scenario is unlikely.
Still, the government could use the confiscated crypto assets as a reserve fund. The US government has more than 200,000 coins, while China has about 190,000 coins, according to data from CoinGecko.
MicroStrategy joins Nasdaq 100
Sentiment towards the crypto market was also boosted by Nasdaq's announcement that MicroStrategy, the world's largest Bitcoin holder, will be added to the Nasdaq 100 index.
The move is expected to drive more money into MicroStrategy stocks as exchange-traded funds (ETFs) rebalance their holdings.
The stock has soared more than 400% this year as traders treated MicroStrategy as a proxy play for Bitcoin. The company has ramped up its Bitcoin purchases in recent weeks, largely funded by debt.
Cryptocurrency prices today: Altcoins rise, Fed expects
Broad crypto prices largely followed Bitcoin's rise, but expectations for this week's Federal Reserve meeting limited overall gains. The central bank is widely expected to cut interest rates by 25 basis points, but concerns about persistently high inflation could slow the pace of rate cuts in 2025.
The world's second-largest cryptocurrency rose 2% to $3,972.39, while remaining flat at $2.4123.
and 1.3%, respectively, and 1.5%.
Meme tokens rose 1.8%.
