On Monday, December 16, 2024, Bitcoin reached a new record high of $106,533. This happened because people thought the U.S. President-elect, Donald Trump, might create a special Bitcoin reserve, like the country’s Strategic Petroleum Reserve. The Cryptocurrency settled at $104,462, which was a 3.2% increase. Investors were very hopeful after hearing Trump’s comments.
Trump first talked about making a national Bitcoin reserve in an interview with CNBC. He said, “We’re going to do something great with crypto, we don’t want China or anyone else—others are using it—and we want to be the leader.” When asked if he would set up a Bitcoin reserve, Trump said yes, which made the cryptocurrency market very excited.
The news matches the general belief that the new government will be more supportive of cryptocurrencies. Experts think that this change could help Bitcoin become more stable in the world of finance and make people more confident in digital currency.
Investors felt even more positive when MicroStrategy, a prominent Bitcoin owner, was added to the Nasdaq 100 index. This decision is likely to attract more big organizations to Bitcoin, helping the cryptocurrency grow even more.
Tony Sycamore, a market analyst at IG said that Bitcoin’s fast rise is something new: “This is a first for Bitcoin. The market now has its sights set on the $110,000 mark. The drop that everyone expected didn’t happen because this news made people very positive about Bitcoin.”
At the same time, Ethereum, which is the second biggest cryptocurrency, also went up. It increased by 1.5% and reached $3,965, showing that the whole market is doing well.
Globally, more people are starting to think about keeping cryptocurrency as a reserve. Data from CoinGecko shows that governments own about 2.2% of all Bitcoin, with the U.S. having almost 200,000 Bitcoins, which are worth more than $20 billion.
