Bitcoin surpasses $107,000 after Trump’s reserve plan, MicroStrategy's Nasdaq entry

Bitcoin surged to a record high of $107,148 on Monday, driven by President-elect Donald Trump's statement that he plans to establish a U.S. bitcoin strategic reserve, similar to the country's strategic oil reserve, fueling optimism among cryptocurrency enthusiasts.

Investor sentiment also got a lift from the inclusion of MicroStrategy into the tech-heavy Nasdaq 100 index that will likely lead to more inflows for the software firm turned bitcoin buyer, News.az reports, citing Reuters.

Bitcoin, the world's biggest and best known cryptocurrency, extended gains to a session high of $107,148 and was most recently at $106,877, up 5.43% from late Friday. The No. 2 digital currency ether was up 1.85% at $3,975.70.

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 alternative currency. Bitcoin is up about 150% in 2024.

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 a significant amount of bitcoins, data site BitcoinTreasuries showed.

Other countries have also been considering cryptocurrency strategic reserves.

Russian President Vladimir Putin earlier this month said the current U.S. administration was undermining the role of the U.S. dollar as the reserve currency in the global economy by using it for political purposes, forcing many countries to turn to alternative assets, including cryptocurrencies.

"For example, bitcoin, who can prohibit it? No one," Putin said.

There are skeptics though, with Federal Reserve Chair Jerome Powell likening bitcoin to gold earlier this month. Analysts also point out that any such move will take time to implement.

News.Az