Bitcoin surged to a record high above $106,000 on Monday after President-Elect Donald Trump suggested he plans to create a US bitcoin strategic reserve similar to its strategic oil reserve, stoking the enthusiasm of crypto bulls.
Bitcoin , the world’s biggest and best known cryptocurrency, hit a high of $106,533 and last traded up 3.2% to $104,462. Smaller crypto ether rose 1.5% to $3,965.
“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 also got a lift from the inclusion of MicroStrategy(MSTR.O), opens new tab into the tech-heavy Nasdaq 100 index that will likely lead to more inflows for the software firm turned bitcoin buyer.
Bitcoin and crypto have been catapulted into the spotlight as investors wager the incoming Trump administration will usher in a friendlier regulatory environment, boosting sentiment around the alternate currency. Bitcoin is up 192% for the year.
“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 told CNBC, opens new tab late last week.
When asked if he plans to build a crypto reserve similar to oil reserves, Trump said: “Yeah, I think so.”
Governments around the world held 2.2% of bitcoin’s total supply as of July, according to data provider CoinGecko, opens new tab, with the United States possessing nearly 200,000 bitcoins valued at more than $20 billion at current levels.
China, UK, Bhutan and El Salvador are the other countries with significant amount of bitcoins, data site BitcoinTreasuries, opens new tab showed.
Other countries have also been considering cryptocurrency strategic reserves.
Russian President Vladimir Putin earlier this month said the current US administration was undermining the role of the US dollar as the reserve currency in the global economy by using it for political purposes, forcing many countries to turn to alternative assets, including cryptocurrencies.
“For example, bitcoin, who can prohibit it? No one,” Putin said.
REUTERS
