The flagship cryptocurrency, Bitcoin, reached a new all-time high after crossing the $106k mark earlier today. Leading the entire market, the total crypto market valuation reached $3.7 trillion, indicating a 2.51% increase in the last 24 hours.
The Bitcoin price trajectory this year has been catalyzed by several key factors including the approval of a Bitcoin spot ETF in January, the Bitcoin halving in April, and the recently concluded U.S. presidential elections. Moreover, its current surge was spurred by a mix of geo-political events.
Here is Why Bitcoin Reached $106K Today
Bitcoin’s price surge came following a recent announcement made by President-elect, Donald Trump, at the New York Stock Exchange (NYSE) on December 12. Trump disclosed his intention to create a strategic Bitcoin reserve to combat national debt.
Moreover, Trump noted his ambition to cement the U.S. as a global leader in crypto and blockchain technology. He said, “We’re gonna do something great with crypto … we want to be ahead.”
The announcement was received with excitement across the crypto market, as it triggered a wave of whale activities. A prominent analyst on X (formerly Twitter), pointed out that the number of large Bitcoin investors has skyrocketed since Trump’s win.
Source: Ali Charts/X
The chart shows the parabolic movement of the number of addresses holding more than 100 BTC on the Bitcoin network since November 5. Per the chart, the number of addresses jumped from below 14,400, to about 17,500 within this time.
Recall that Trump embraced cryptocurrencies during his campaign. At that time, several key industry figures and companies supported by donating cryptocurrencies to the cause. Trump promised to make the U.S. the crypto capital of the world and replace the current SEC chairman, Gary Gensler, with a pro-crypto leader, Paul Atkins.
His stance resonated with investors whose appetite and confidence in digital assets have increased rapidly.
Other Factors Fueling the Bitcoin Surge
Meanwhile, in Russia, the Finance minister, Anton Tkachev, also suggested turning to Bitcoin and establishing a strategic Bitcoin reserve. He suggested this as a possible measure to the issue of sanctions placed on the country.
Another catalyst behind the meteoric rise in the Bitcoin price is the aggressive Bitcoin purchase by Microstrategy. Last week, the Michael Saylor-led company secured 21,500 BTC with about $2.1 billion.
Consequently, its total Bitcoin holding reached 423,650 BTC, making it the largest corporate Bitcoin holder in the world. In fact, in a recent interview, Saylor advised the U.S. government to sell all its gold and buy Bitcoin instead. His comment underscores his confidence in the future of the digital asset as a store of value.
Lastly, FOMO (fear of missing out) has been on a high since Bitcoin first crossed $100k. Investors are rushing into the market, seeking opportunities as the market continues to rise.
At the time of writing, Bitcoin traded at $105,086, representing a 3.11% increase in the last 24 hours.
The post Bitcoin Achieves New ATH of $106K Amid Market Surge, Here is Why appeared first on Coinfomania.
