Investor enthusiasm grows as Trump administration hints at pro-crypto measures
Bitcoin soared to a record high above $106,000 on Monday after U.S. President-elect Donald Trump indicated plans to establish a bitcoin strategic reserve, akin to the country’s strategic oil reserve, further fueling optimism among cryptocurrency investors.
The world’s largest and most prominent cryptocurrency reached a peak of $106,533 before settling up 3.2% at $104,462. Smaller cryptocurrency ether followed suit, rising 1.5% to $3,965.
“Blue Sky Territory” for Bitcoin
“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG. “The next figure the market will be looking for is $110,000. The pullback that a lot of people were waiting for just didn’t happen because now we’ve got this news.”
Investor sentiment received another boost with the inclusion of MicroStrategy in the tech-heavy Nasdaq 100 index. The move is expected to drive additional inflows for the software company, which has become a significant buyer of bitcoin.
Trump’s Pro-Crypto Shift
Bitcoin and the broader cryptocurrency market have found themselves in the spotlight as investors anticipate a friendlier regulatory landscape under the Trump administration. Trump’s latest remarks have stoked optimism that alternative currencies will thrive under his leadership.
“We’re gonna do something great with crypto because we don’t want China or anybody else — not just China but others are embracing it — and we want to be the head,” Trump said in an interview with CNBC late last week.
When asked whether his administration plans to establish a bitcoin reserve similar to the U.S. strategic oil reserve, Trump responded, “Yeah, I think so.”
Bitcoin’s Meteoric Rise
Bitcoin has surged an astonishing 192% in 2024 alone, cementing its status as the best-performing major asset of the year. The market’s optimism has been driven by Trump’s increasingly favorable stance on digital currencies, alongside hopes for regulatory clarity and institutional adoption.
MicroStrategy’s inclusion in the Nasdaq 100 has further amplified investor excitement. Known for its aggressive bitcoin acquisitions, the company’s rise in prominence is seen as a signal of mainstream acceptance of cryptocurrency as a legitimate asset class.
As bitcoin pushes into uncharted territory, all eyes are now set on whether the cryptocurrency can sustain its upward momentum and hit the next milestone of $110,000.
