Bitcoin surged past $107,000 on Monday, reaching a record high, as President-elect Donald Trump reiterated his plan to create a US bitcoin strategic reserve. The news lifted investor sentiment, with crypto bulls expecting a friendlier regulatory environment under the new administration.
Since Trump’s election on November 5, Bitcoin has gained over 50% and is now up about 150% in 2024. The cryptocurrency market has almost doubled to hit a record $3.8 trillion.
Trump has been a proponent of digital assets since his campaign, promising to make the US the “crypto capital of the planet.” He named a White House czar for artificial intelligence and cryptocurrencies, David Sacks, and nominated Paul Atkins to head the Securities and Exchange Commission.
The inclusion of MicroStrategy in the Nasdaq 100 index is also seen as a boost, with investors buying shares to mirror the holdings of the broader index. This could drive up the value of the stock and allow MicroStrategy to buy more crypto through debt and equity offerings.
Analysts are cautiously optimistic about the potential for a US bitcoin strategic reserve, but warn that it may take time to implement. Federal Reserve Chair Jerome Powell likened Bitcoin to gold earlier this month, while Russia’s President Vladimir Putin described it as an attractive alternative asset.
Despite skepticism, many expect Trump’s pro-crypto stance to continue supporting Bitcoin’s rally. Analyst Tony Sycamore said the market is now in “blue sky territory,” with prices potentially reaching $110,000 or more.
Source: https://eu.usatoday.com/story/money/investing/2024/12/16/bitcoin-past-107000-hopes-grow-for-strategic-reserve/77035011007