Table of Contents
Bitcoin reached a record high above $106,000 on Monday after Donald Trump announced that he plans to establish a strategic reserve of bitcoin in the US. This news has energized cryptocurrency bulls.
Bitcoin, the largest and most well-known cryptocurrency in the world, was up 3.1% at $104,493 after reaching a high of $106,533. The smaller cryptocurrency Ether increased by 1.2% to $3,952.
Investors bet that the next presidency of Trump would bring a more relaxed regulatory environment. Sentiment towards the alternative currency has increased, pushing Bitcoin and cryptocurrency into the public eye. This year, Bitcoin has increased 192%.
Bitcoin Market Fluctuations
IG analyst Tony Sycamore stated: "We're in blue sky territory here. The market is going to be searching for $110,000 next.” Because of this news, an evacuation that many were anticipating simply did not occur.
Donald Trump said: “Since we want to lead the cryptocurrency movement and don't want China or anybody else to follow the trend, we're going to do something amazing with it.”
When questioned about his intentions to create a cryptocurrency reserve, Trump responded, "Yeah, I think so."
As of July, the United States had around 200,000 bitcoins worth over $20 billion at current prices, with governments holding 2.2% of the entire supply. Bitcoin Treasuries opens a separate tab; the other nations possessing a sizable amount of Bitcoin are China, the United Kingdom, Bhutan, and El Salvador.
Other nations have also considered cryptocurrency a strategic reserve.
Analysts Statements
Earlier this month, Russian President Vladimir Putin claimed that the current U.S. government was manipulating the dollar for political ends. It eroding its status as the world's reserve currency and driving several nations to use virtual currencies.
"Who has the authority to ban Bitcoin? Nobody," Putin declared.
Pepperstone's head of research, Chris Weston, stated, “I believe we still need to take care when it comes to a Bitcoin strategic reserve because this is doubtful to occur anytime soon.”
“Any remark from Trump that gives higher hopes that preparations for a strategic reserve are developing is a tailwind, but there would be drawbacks that would need to be well thought out and clearly communicated to market participants.”
Bitcoin Boost
Since Trump and other pro-crypto politicians were elected on November 5, Bitcoin has increased by more than 50%. The value of the market for bitcoin has nearly doubled this year, reaching a record of over $3.8 trillion. This month, Trump appointed David Sacks as a White House czar for cryptocurrency and artificial intelligence.
Trump announced that he would appoint Paul Atkins, a pro-crypto lawyer from Washington, to lead the Securities and Exchange Commission. MicroStrategy's addition to the Nasdaq-100 Index will take effect at the market opening on December 23.
