Bitcoin soared to a new record above $106,000 on Monday, fueled by President-elect Donald Trump’s suggestion of establishing a U.S. bitcoin strategic reserve, akin to the country’s oil reserves. The news sparked excitement among crypto investors, pushing Bitcoin up 3.2% to $104,462, while ether rose 1.5% to $3,965.
Tony Sycamore, an analyst at IG, noted the market’s optimism: “The pullback many expected didn’t happen. The next target is $110,000.”
Investor sentiment also benefited from MicroStrategy’s inclusion in the Nasdaq 100 index, a move expected to attract more investment to the bitcoin-focused firm.
Trump’s comments about crypto-friendly policies under his administration further boosted confidence. “We’re going to do something great with crypto,” Trump told CNBC, hinting at plans for a bitcoin reserve to counter China’s growing influence in cryptocurrency.
Currently, governments hold 2.2% of bitcoin’s supply, with the U.S. owning nearly 200,000 bitcoins worth over $20 billion. Countries like China, the UK, Bhutan, and El Salvador also maintain significant bitcoin holdings.
Russian President Vladimir Putin recently criticized the U.S. dollar’s dominance, suggesting bitcoin and cryptocurrencies could play a bigger role in the global economy. However, Federal Reserve Chair Jerome Powell and other skeptics warn that implementing a bitcoin reserve will require time and caution.
