Bitcoin soared to an all-time high above $106,000 on Monday, following President-elect Donald Trump’s comments about creating a U.S. bitcoin strategic reserve similar to the strategic oil reserve.
The world’s largest cryptocurrency reached $106,533 before settling at $104,493, up 3.1% by 0857 GMT. Smaller cryptocurrency Ether also rose, climbing 1.2% to $3,952.
“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 was further buoyed by the inclusion of MicroStrategy into the Nasdaq 100 index, which is expected to drive more inflows into the company, a prominent Bitcoin buyer.
Bitcoin has surged 192% this year, with optimism fueled by expectations that the Trump administration will adopt a friendlier regulatory stance toward cryptocurrencies.
“We’re gonna do something great with crypto because we don’t want China or anybody else… to get ahead,” Trump told CNBC.
When asked about creating a bitcoin reserve, Trump responded, “Yeah, I think so.”
As of July, governments globally held 2.2% of Bitcoin’s total supply, with the U.S. owning nearly 200,000 BTC, valued at over $20 billion. Other significant holders include China, the UK, Bhutan, and El Salvador.
Russian President Vladimir Putin recently argued that U.S. dollar dominance is driving countries toward alternative assets like cryptocurrencies. “For example, Bitcoin, who can prohibit it? No one,” Putin said.
Still, skepticism remains. Federal Reserve Chair Jerome Powell recently compared Bitcoin to gold, while analysts noted such strategic reserve plans would take time to implement.
Chris Weston of Pepperstone added, “We still need to be cautious on a BTC strategic reserve… this would come with consequences which would need to be carefully considered.”
Bitcoin’s price has surged over 50% since Trump’s election, with the total cryptocurrency market value nearing $3.8 trillion this year. Trump, who once criticized crypto, has since embraced it, promising to make the U.S. the “crypto capital of the planet.”
MicroStrategy, now the largest corporate holder of Bitcoin, will soon join the Nasdaq 100, driving speculation that CEO Michael Saylor will further increase Bitcoin purchases.