Bitcoin reached an all-time high of $106,533 on Monday, driven by U.S. President-elect Donald Trump’s suggestion to establish a U.S. Bitcoin Strategic Reserve, similar to the nation’s Strategic Petroleum Reserve. This sparked investor optimism, sending Bitcoin’s price to settle at $104,462, marking a 3.2% increase. Ethereum also saw gains, rising 1.5% to $3,965.
Investor confidence surged further with the inclusion of major Bitcoin holder MicroStrategy in the Nasdaq 100 index, which is expected to draw institutional investors and fuel Bitcoin’s upward momentum. Analyst Tony Sycamore from IG noted that the market’s bullish sentiment could push Bitcoin towards $110,000.
Trump’s comments on cryptocurrencies are seen as a shift toward favorable regulation. He emphasized the U.S. should lead in the crypto space, responding affirmatively when asked about a national Bitcoin reserve. Globally, governments are already exploring crypto reserves, with the U.S. holding nearly 200,000 Bitcoins valued at over $20 billion.
While Bitcoin’s rise aligns with expectations of a supportive regulatory environment, skepticism remains. Federal Reserve Chair Jerome Powell has likened Bitcoin to gold, suggesting it may be more speculative than practical. Some experts, like Chris Weston of Pepperstone, caution that establishing a strategic Bitcoin reserve would be complex and unlikely to occur soon.
Since Trump’s November 5 election win, Bitcoin has surged more than 50%, and the cryptocurrency market value has nearly doubled, surpassing $3.8 trillion. Trump’s pro-crypto stance includes appointing a White House czar for AI and cryptocurrencies, David Sacks, and nominating pro-crypto lawyer Paul Atkins to head the SEC
In Nigeria, stakeholders urge the government to take proactive steps to capitalize on the global crypto boom under Trump’s leadership, emphasizing the need for urgent regulatory action to avoid losing market opportunities.
