Bitcoin’s value surged to a historic high above $106,000 on Monday, marking a new milestone for the cryptocurrency market.
The world’s most popular digital asset hit a peak of $106,533 before settling at $104,462, showing a 3.2% increase from its previous trading price.
The surge follows bold statements by U.S. President-elect Donald Trump, who revealed plans to create a U.S. bitcoin strategic reserve, similar to the country’s well-known oil reserves.
“Bitcoin has entered blue sky territory,” said Tony Sycamore, an analyst at IG, an online trading platform. “The next target we’re watching for is $110,000. The pullback many expected didn’t happen, and it’s all because of this news.”
Bitcoin’s value has risen dramatically throughout 2024, and the recent surge has further fueled investor optimism about its future. On the same day, smaller cryptocurrencies like Ether also experienced notable gains, rising 1.5% to reach $3,965.
The rally is largely attributed to Trump’s public comments, which have sent shockwaves through the crypto world. Investors are betting that the incoming administration will usher in more favorable regulations for cryptocurrencies like Bitcoin.
“We’re gonna do something great with crypto,” Trump told CNBC last week. “We don’t want China or anyone else to take the lead. We want to be number one.”
When asked if he planned to create a U.S. bitcoin reserve similar to the country’s oil reserves, Trump answered, “Yeah, I think so.”
This statement has pushed Bitcoin’s price to unprecedented levels, with the currency now up more than 150% in 2024 alone. As Bitcoin hits new highs, the global conversation about crypto reserves intensifies.
Countries around the world are already taking steps to accumulate Bitcoin for future use. Data provider CoinGecko reported that governments collectively hold 2.2% of Bitcoin’s total supply. The U.S. alone owns nearly 200,000 Bitcoins, worth over $20 billion at current prices.
The idea of a strategic reserve for Bitcoin has sparked conversations in several other countries as well. Chinese officials, for example, have expressed interest in diversifying their assets by investing in Bitcoin. Bhutan, El Salvador, and the United Kingdom are also reportedly building up their Bitcoin holdings.
In Russia, President Vladimir Putin recently commented on the global shift toward alternative assets like Bitcoin, stating, “Who can prohibit it? No one.”
The potential for a U.S. bitcoin reserve, alongside Trump’s promises to make the U.S. a leader in crypto, has captivated the attention of both investors and governments around the world.
Bitcoin’s rise is being viewed as a potential game-changer for the global financial system. With Trump’s pro-crypto stance, many investors are betting that the U.S. will strengthen its position in the cryptocurrency market, potentially setting the stage for even higher prices in the near future.
As Trump’s administration approaches, the cryptocurrency community is watching closely. Will the U.S. move forward with the creation of a strategic Bitcoin reserve? And how will this shape the future of digital currencies globally?
The answers may lie in the coming months, as Bitcoin’s value continues to soar, driven by both speculation and hopes for a more crypto-friendly regulatory environment in the U.S.
For now, Bitcoin’s record-breaking performance continues to attract the attention of investors, governments, and financial analysts alike. As Sycamore put it, “The market is looking for $110,000 next.” And with Trump’s announcement, that target may not be far off.
