Bitcoin has hit a record high, crossing $106,000, fueled by speculation about President-elect Donald Trump’s plans to create a U.S. Bitcoin strategic reserve. This would mirror the country’s oil reserve and marks a monumental change in how governments may approach cryptocurrency. Trump confirmed his intentions during a CNBC interview, saying, “Yeah, I think so,” when asked about a crypto reserve.
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Trump Sparks Optimism with Pro-Crypto Stance
The excitement stems from Trump’s campaign promises to make the U.S. the “crypto capital of the planet.” His administration seems to be taking this seriously. For instance, Trump plans to nominate Paul Atkins, a known pro-crypto attorney, to head the SEC, and has appointed David Sacks as the White House czar for artificial intelligence and cryptocurrencies.
Meanwhile, governments worldwide are already holding Bitcoin reserves, with the U.S. reportedly owning nearly 200,000 coins valued at over $20 billion. According to Reuters, countries like China, Bhutan, and El Salvador have also embraced this strategy. Russian President Vladimir Putin has argued that U.S. sanctions have driven nations to adopt alternative assets like Bitcoin.
Market Reacts to MicroStrategy’s Nasdaq 100 Inclusion
Adding fuel to the rally, MicroStrategy (MSTR), a prominent Bitcoin holder, was recently added to the Nasdaq 100 index. Analysts expect its inclusion to attract institutional inflows, boosting Bitcoin demand further. According to Pepperstone’s Chris Weston, “The market is front-running the idea that MicroStrategy CEO Michael Saylor will capitalize on the rally to buy more Bitcoin.”
Analysts Predict Bitcoin Could Hit $125,000
Some experts predict Bitcoin’s bullish trend could push it to $125,000 by early 2025. However, CK Zheng of ZK Square told CoinTelegraph of a potential 30% correction, as much of the optimism surrounding Trump’s administration might already be baked into prices.
The coming weeks, particularly with a potential Federal Reserve rate cut on Dec. 18, will likely test whether Bitcoin’s surge is here to stay. At the time of writing, BTC is sitting at $104,842.40.
