According to Reuters, on December 16, 2024, Bitcoin – the largest and most famous coin in the world – surpassed a new record price of $106,000, as President-elect Donald Trump hinted at plans to create a strategic reserve for Bitcoin in the U.S., similar to the strategic oil reserve. This move encouraged crypto supporters, pushing Bitcoin to a high of $106,533 before adjusting to $104,462.
Other altcoins like Ethereum also saw price increases, with a rise of 1.5% reaching $3,965. Tony Sycamore, an analyst at IG, said, "We are in uncharted territory," implying that the market is heading towards a price level of $110,000.
In particular, investor optimism was further bolstered by MicroStrategy, a major Bitcoin investor, being added to the Nasdaq 100 index. This could lead to an influx of capital, as MicroStrategy has become the largest institutional investor holding Bitcoin.
Donald Trump, who had previously criticized crypto, has now changed his stance and believes that the U.S. needs to become the "crypto capital of the planet." He has also appointed several crypto-supporting officials to key positions in the administration.
With the total market capitalization of the cryptocurrency market nearly doubling this year, reaching over $3.8 trillion, the prospect under Trump could further boost the development of crypto. However, experts like Chris Weston from Pepperstone warn that building a strategic reserve for Bitcoin will take time and needs to be clearly communicated to investors in the market.
News from Reuters provides insights into the volatility and new opportunities in the crypto market that investors cannot afford to miss.
