Bitcoin reached a new record on Monday, soaring above USD106,000 in early Asian trading. The surge was fueled by comments from President-elect Donald Trump, who hinted at the possibility of setting up a U.S. bitcoin strategic reserve.
At its peak, Bitcoin touched USD106,533 before settling slightly lower at USD105,688. In contrast, smaller cryptocurrency ether saw an increase of nearly 3%, reaching USD4,014.
Russian President Vladimir Putin recently expressed skepticism about the need for state reserves in foreign currencies. He suggested that investing reserves domestically was a more attractive option. Additionally, he criticized U.S. actions that have diminished the role of the U.S. dollar as the global reserve currency. This shift has pushed many nations to explore alternative assets, including cryptocurrencies like Bitcoin.
However, Bitcoin's rapid rise is not without its critics. Federal Reserve Chair Jerome Powell recently compared Bitcoin to gold, emphasizing its volatility and lack of use as a payment method or store of value. He argued that Bitcoin is not a competitor to the U.S. dollar.
Since the November 5 election, Bitcoin’s price has surged by over 50%, a period that also saw Trump and other pro-crypto candidates win. The broader cryptocurrency market has experienced a significant boom, nearly doubling in value this year to reach over USD3.8 trillion, according to CoinGecko.
Trump’s administration has been notably pro-cryptocurrency. He appointed David Sacks, a former PayPal executive and close associate of Elon Musk, as a White House czar for artificial intelligence and cryptocurrencies. Trump also plans to nominate Paul Atkins, a pro-crypto attorney, to head the Securities and Exchange Commission.
In another significant move, Nasdaq announced that MicroStrategy, a leading Bitcoin investor, will be added to the Nasdaq-100 Index. MicroStrategy's stock has skyrocketed by over six times this year, increasing its market value to nearly USD94 billion, solidifying its position as the largest corporate holder of Bitcoin.
The cryptocurrency market has seen explosive growth in 2024, with Bitcoin leading the charge and investors looking to alternative assets for both value and growth.
