Bitcoin sets new record above $106,000 on Trump’s crypto proposal

Bitcoin surged to an all-time high, surpassing $106,000 on Monday, following President-elect Donald Trump’s suggestion to establish a U.S. Bitcoin strategic reserve akin to the nation’s strategic oil reserve.

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, News.az reports, citing Reuters.

"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 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.

Governments around the world held 2.2% of bitcoin's total supply as of July, according to data provider CoinGecko, 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 Bitcoin Treasuries showed.

Other countries have also been considering cryptocurrency strategic reserves.

News.Az