Bitcoin recovered from profit-taking on Tuesday and extended its record climb. The biggest cryptocurrency rose beyond $107,000, reaching $107,148 before resting at $106,940, a 5.43% increase from late Friday. President-elect Donald Trump's announcement of a U.S. Bitcoin strategic reserve and MicroStrategy's inclusion in the Nasdaq 100 index have boosted investor confidence.
Bitcoin has gained 150% in 2024, showing its durability and strong demand for digital assets. Traders and observers say Bitcoin is strong and approaching $110,000, the next psychological milestone.
Governments worldwide are accumulating cryptocurrencies. According to CoinGecko, governments possess 2.2% of Bitcoin's supply, with the US holding roughly 200,000 BTC worth over $20 billion. Other major holders are China, Bhutan, the UK, and El Salvador. This pattern shows Bitcoin's rising strategic value amid geopolitical and economic uncertainty.
MicroStrategy's Nasdaq 100 entry boosts institutional demand. Since December 23, MicroStrategy has been in the Nasdaq 100 index, boosting Bitcoin's surge. MicroStrategy, headed by CEO Michael Saylor, is the biggest corporate Bitcoin holder, making it a crucial proxy for institutional investors seeking exposure.
MicroStrategy's stock should rise after joining the tech-heavy index. MicroStrategy, which has aggressively extended its Bitcoin holdings via debt and equity issues, will get additional funding when index funds and ETFs restructure their portfolios to follow the Nasdaq 100.
The stock of MicroStrategy has increased more than six-fold this year, hitting about $94 billion. The inclusion boosts institutional trust in Bitcoin and indicates its expanding significance in conventional financial markets, analysts say.
Future: Bitcoin aims for $110,000 Bitcoin's path to $110,000 is eagerly watched by investors. Institutional inflows, geopolitical intrigue, and Trump's pro-crypto position have fostered development.
