Bitcoin Hits Record High Above $106,000
TEHRAN (Tasnim) – Bitcoin soared to an all-time high above $106,000 on Monday after US President-elect Donald Trump suggested creating a national bitcoin reserve, fueling optimism among cryptocurrency investors.
Bitcoin, the world's largest cryptocurrency, reached a record high of $106,533 before trading up 3.2% at $104,462.
Smaller cryptocurrency ether also climbed, gaining 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 received an additional boost from the upcoming inclusion of MicroStrategy (MSTR.O) in the Nasdaq-100 index, a move expected to drive further inflows to the bitcoin-heavy software firm.
Bitcoin has been surging amid growing expectations that the incoming Trump administration will adopt a more crypto-friendly regulatory stance.
Bitcoin has gained 192% year-to-date.
"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 late last week.
When asked about plans for a bitcoin reserve similar to the US Strategic Petroleum Reserve, Trump responded, "Yeah, I think so."
Governments globally held about 2.2% of bitcoin’s total supply as of July, according to CoinGecko, with the United States owning nearly 200,000 bitcoins worth over $20 billion at current prices.
Countries such as China, the UK, Bhutan, and El Salvador also hold substantial bitcoin reserves, data from BitcoinTreasuries showed.
Russian President Vladimir Putin recently criticized the US for undermining the dollar’s global role, arguing it pushes countries to explore alternative assets like cryptocurrencies.
Despite optimism, some analysts remain cautious.
Federal Reserve Chair Jerome Powell recently compared bitcoin to gold, while Chris Weston, head of research at Pepperstone, said:
"I think we still need to be cautious on a BTC strategic reserve, and at least consider that this is not likely to happen anytime soon."
Weston added, "Of course, any comment from Trump that offers an increased degree of hope that plans for a strategic reserve is evolving are an obvious tailwind, but this would come with consequences which would need to be carefully considered and well telegraphed to market players."
Bitcoin has surged over 50% since Trump’s election victory on November 5, alongside other pro-crypto candidates.
The overall cryptocurrency market has nearly doubled this year, reaching a record value of $3.8 trillion, according to CoinGecko.
During his campaign, Trump, who once labeled crypto a "scam," pledged to make the US the “crypto capital of the planet.”
This month, Trump appointed David Sacks, a former PayPal executive, as White House czar for artificial intelligence and cryptocurrencies.
He also named pro-crypto attorney Paul Atkins as his nominee to lead the Securities and Exchange Commission (SEC).
Meanwhile, Nasdaq announced Friday that MicroStrategy would join the Nasdaq-100 Index, effective December 23.
MicroStrategy, led by CEO Michael Saylor, has seen its shares climb more than six-fold this year, valuing the company at nearly $94 billion.
The firm remains the largest corporate holder of bitcoin.
Pepperstone’s Weston suggested the market anticipates Saylor will use the surge in MicroStrategy's share price to sell shares and purchase more bitcoin.
