Bitcoin soared to an all-time high above $106,000 on Monday following remarks by President-elect Donald Trump about establishing a U.S. bitcoin strategic reserve, mirroring the nation’s strategic oil reserve. The announcement has ignited optimism among cryptocurrency enthusiasts.
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The world’s largest cryptocurrency peaked at $106,533 before settling at $104,493, up 3.1%. Meanwhile, smaller cryptocurrency ether rose 1.2% to $3,952.
“We’re in uncharted territory,” said Tony Sycamore, an analyst at IG. “The market’s next target is $110,000. The pullback many expected didn’t materialize, thanks to this news.”
MicroStrategy’s Nasdaq 100 Inclusion Boosts Sentiment Investor sentiment was further bolstered by the inclusion of MicroStrategy, a software company turned bitcoin investor, in the Nasdaq 100 index. The move is anticipated to drive increased inflows into the company, enhancing its ability to further invest in bitcoin.
Bitcoin’s remarkable rise—up 192% year-to-date—reflects growing confidence that the incoming Trump administration will foster a crypto-friendly regulatory environment. Trump’s pro-crypto stance has positioned bitcoin as a key alternative currency in the spotlight.
Trump’s Vision for Crypto Leadership “We’re going to do something great with crypto because we don’t want China or anyone else — not just China, but others embracing it — to take the lead,” Trump said in an interview with CNBC last week.
When asked about creating a bitcoin reserve similar to the oil reserve, Trump responded, “Yeah, I think so.” Data from CoinGecko indicates that governments worldwide hold 2.2% of bitcoin’s total supply. The United States alone possesses nearly 200,000 bitcoins, valued at over $20 billion at current prices.
Other nations, including China, the UK, Bhutan, and El Salvador, also hold significant bitcoin reserves, according to BitcoinTreasuries.
Global Interest in Crypto Reserves The concept of cryptocurrency reserves is gaining traction globally. Russian President Vladimir Putin recently criticized the U.S. for politicizing the dollar, prompting many countries to explore alternative assets like cryptocurrencies.
“Bitcoin—who can prohibit it? No one,” Putin remarked earlier this month.
However, skeptics remain. Federal Reserve Chair Jerome Powell likened bitcoin to gold, suggesting it serves as a speculative asset rather than a reliable reserve. Analysts caution that implementing a strategic bitcoin reserve would take time and require careful planning.
“A U.S. bitcoin reserve is not likely to happen anytime soon,” said Chris Weston, head of research at Pepperstone. “While any positive comments from Trump on the topic could boost market sentiment, such a move would need to be well-considered and communicated.”
Crypto Market Momentum Bitcoin’s meteoric rise—more than 50% since Trump’s election victory on November 5—has helped push the total cryptocurrency market to a record valuation of over $3.8 trillion, according to CoinGecko.
Trump, who once dismissed crypto as a scam, embraced digital assets during his campaign, pledging to make the U.S. the “crypto capital of the planet.” This month, he named former PayPal executive David Sacks as White House czar for artificial intelligence and cryptocurrencies and nominated pro-crypto attorney Paul Atkins to lead the Securities and Exchange Commission.
MicroStrategy Leads Corporate Bitcoin Adoption In a separate development, Nasdaq announced that MicroStrategy will join the Nasdaq-100 Index starting December 23. The company, led by CEO Michael Saylor, is the largest corporate holder of bitcoin. Its shares have surged over sixfold this year, with a market value nearing $94 billion.
Pepperstone’s Weston noted that the market is anticipating MicroStrategy’s inclusion in the index will further boost its share price. “Michael Saylor is likely to capitalize on this rally by selling shares and purchasing more bitcoin,” he said.
As bitcoin reaches unprecedented heights, the crypto market awaits further developments under Trump’s leadership, which could reshape the global cryptocurrency landscape.
