Bitcoin surged to a record high of $106,533 on Monday, buoyed by U.S. President-elect Donald Trump’s remarks hinting at plans for a U.S. Bitcoin Strategic Reserve akin to the country’s Strategic Petroleum Reserve. This announcement has invigorated the cryptocurrency market, propelling Bitcoin’s value and stoking optimism among investors.
The world’s largest cryptocurrency climbed 3.2%, trading at $104,462, while Ethereum, the second-largest, gained 1.5% to $3,965. Market sentiment has been further bolstered by the inclusion of MicroStrategy, a significant Bitcoin holder, in the Nasdaq 100 index—a move expected to drive more institutional investments.
Analysts suggest that the market is entering “blue sky territory,” with expectations of Bitcoin crossing the $110,000 mark soon. Tony Sycamore of IG noted, “The pullback many anticipated didn’t happen, as bullish sentiment dominated following Trump’s comments.”
Trump’s pledge to position the U.S. as the global leader in cryptocurrency has been a major driver of this surge. Speaking to CNBC, Trump affirmed plans for a Bitcoin reserve, stating, “We’re going to do something great with crypto because we don’t want China or anyone else leading.”
Governments worldwide are increasingly exploring cryptocurrency reserves. Data from CoinGecko shows that 2.2% of Bitcoin’s total supply is held by governments, with the U.S. possessing nearly 200,000 Bitcoins worth over $20 billion. Notable holders also include China, the UK, Bhutan, and El Salvador.
Russian President Vladimir Putin recently criticized the U.S. dollar’s politicization, emphasizing Bitcoin as an alternative global asset. “Countries are turning to alternative assets, including Bitcoin. No one can prohibit it,” Putin remarked.
Despite the enthusiasm, some experts urge caution. Federal Reserve Chair Jerome Powell likened Bitcoin to gold, suggesting its speculative nature. Chris Weston of Pepperstone added, “Establishing a Bitcoin reserve would be a complex process with significant consequences. It’s not likely to happen soon.”
Trump’s administration is expected to usher in a friendlier regulatory environment for cryptocurrencies. He has pledged to make the U.S. the “crypto capital of the planet” and appointed former PayPal executive David Sacks as White House czar for AI and cryptocurrencies. Pro-crypto attorney Paul Atkins has also been nominated to head the SEC.
The total cryptocurrency market value has nearly doubled in 2024, reaching $3.8 trillion. In Nigeria, blockchain stakeholders are urging regulators to act swiftly to capitalize on the anticipated global crypto boom under Trump’s leadership. According to Obinna Iwuno, President of the Stakeholders in Blockchain Association of Nigeria (SiBAN), proactive measures are essential to avoid losing value to foreign markets.
Bitcoin’s meteoric rise reflects growing confidence in a pro-crypto future under Trump’s leadership. While challenges and skepticism remain, the prospect of a national Bitcoin reserve and a friendlier regulatory landscape have catapulted cryptocurrencies into the global spotlight.