Bitcoin soared to record highs on Monday, topping $106,000, following President-elect Donald Trump’s pledge to establish a US bitcoin strategic reserve. This bold move, likened to the country’s strategic oil reserve, has fueled investor confidence and crypto market enthusiasm.
The world’s leading cryptocurrency reached an all-time session high of $107,148 before settling at $106,877, marking a 5.43% gain from Friday. The momentum extended to the second-largest cryptocurrency, Ethereum (ETH), which rose 1.85% to $3,975.70.
Trump’s Bold Vision for Bitcoin
Trump’s comments about creating a bitcoin strategic reserve have sent shockwaves through the crypto space. Speaking to CNBC, Trump emphasized:
“We’re gonna do something great with crypto because we don’t want China or anybody else – not just China but others – embracing it. We want to be the head.”
The proposed reserve aligns with Trump’s broader vision to position the United States as the “crypto capital of the planet.” Analysts believe that such a policy could trigger significant institutional adoption of bitcoin and accelerate its role as a strategic global asset.
Governments globally are already exploring the potential of holding bitcoin as part of their reserves. As of July 2024, nations collectively held 2.2% of bitcoin’s total supply, with the United States leading the pack at nearly 200,000 bitcoins (valued over $20 billion). Other key holders include China, the United Kingdom, Bhutan, and El Salvador.
Russian President Vladimir Putin also weighed in, suggesting that the politicization of the US dollar is prompting countries to turn to alternatives like cryptocurrencies:
“For example, bitcoin, who can prohibit it? No one.”
MicroStrategy Joins Nasdaq 100
Adding to the market’s bullish sentiment, exchange operator Nasdaq announced the inclusion of MicroStrategy (MSTR.O) in its prestigious Nasdaq-100 Index, effective December 23, 2024.
MicroStrategy, under CEO Michael Saylor, has cemented itself as a major bitcoin advocate, holding the largest corporate bitcoin reserve. Its share price has skyrocketed over six-fold this year, elevating the company’s market value to $94 billion.
The inclusion into the Nasdaq-100 is expected to drive further institutional inflows into MicroStrategy shares, increasing the company’s capacity to acquire more bitcoin through debt and equity offerings. Crypto analyst Matthew Dibb commented:
“This inclusion could spark a self-sustaining cycle of capital, driving up bitcoin’s spot price.”
Bitcoin’s Stellar Performance in 2024
Bitcoin has rallied approximately 150% in 2024, supported by investor optimism over Trump’s pro-crypto stance. Since Trump’s election victory on November 5, bitcoin has surged over 50% as markets anticipate a regulatory environment more favorable to digital assets.
The total cryptocurrency market has mirrored bitcoin’s bullish trajectory, reaching a staggering value of $3.8 trillion, according to CoinGecko data.
Caution Amid Euphoria
While investor optimism remains high, some analysts are urging caution. Federal Reserve Chair Jerome Powell recently compared bitcoin to gold, suggesting its adoption as a strategic reserve asset will require time and careful planning. Chris Weston, head of research at Pepperstone, noted:
“A BTC strategic reserve is a long-term possibility, but immediate implementation remains unlikely. It’s a double-edged sword requiring well-thought-out strategies.”
Trump’s Pro-Crypto Cabinet
In further support of his crypto agenda, Trump has appointed former PayPal executive David Sacks as White House czar for artificial intelligence and cryptocurrencies. Additionally, Paul Atkins, a pro-crypto Washington attorney, has been nominated to lead the Securities and Exchange Commission (SEC).
Future Outlook
As bitcoin navigates “blue sky territory” above $106,000, analysts predict that the next milestone of $110,000 could be within reach. IG analyst Tony Sycamore remarked:
“The pullback that many anticipated didn’t materialize, and Trump’s bitcoin reserve proposal has amplified the upward momentum.”
With Trump’s incoming administration promising to embrace cryptocurrencies and MicroStrategy’s growing influence, bitcoin is poised for further growth. As investor excitement continues to build, all eyes are now on how these developments will reshape the global crypto market in 2025.
Afsheen Gohar believes in the power of clear, straightforward writing. Her blog posts tackle everyday topics with relatable insights and easy-to-follow advice. With a conversational style, she makes complex subjects feel understandable. She’s dedicated to sharing knowledge and empowering readers to take action. Find her latest posts on trending in social.
