Bitcoin soared to an all-time high of $106,533 on Monday, boosted by President-elect Donald Trump‘s signals about creating a US strategic reserve in cryptocurrency, just like its petroleum reserves. The world’s top cryptocurrency climbed 3.2% to $104,462, while ether, the second-largest crypto, rose 1.5% to $3,965.
Trump’s comments led to added bullishness in anticipation of favorable regulation of crypto. “We want to lead the world in crypto, not let others like China take the lead,” Trump told CNBC. When probed about having a crypto reserve, he said, “It could happen,” stirring excitement within investors.
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This is coming as the total cryptocurrency market value has reached its highest ever at $3.8 trillion, with Bitcoin rising about 192% this year. Trump’s campaign turned towards digital assets, pledging to make the US the global hub of crypto. He also appointed crypto-friendly figures to influential posts, like David Sacks as AI and crypto czar, and Paul Atkins to head the SEC.
MicroStrategy signed and announced membership in the Nasdaq-100 index while at the same time, it became the biggest corporate holder of bitcoins, raising further expectations of inflows into the crypto market. Shares in the new software-turned-crypto firm have skyrocketed six-fold this year, while analysts predict that CEO Michael Saylor will possibly invest in more bitcoin from gains made.
Need caution in light of all the good things said because creating a bitcoin reserve is going to take quite a while and effort in development. Federal Reserve Chair Jerome Powell signified how much careful thinking and deliberation this move would have to be by declaring bitcoin is much the same as gold.