Earlier elected President Donald Trump reiterated his plan to establish a U.S. Bitcoin strategic reserve similar to the U.S. Strategic Petroleum Reserve, which has sparked enthusiasm among cryptocurrency bulls, causing Bitcoin to surge on Monday and breach $107,000.
MicroStrategy MSTR.O has been included in the tech-heavy Nasdaq 100 index, which has also boosted investor sentiment and could bring more capital inflows to the software company transformed into a Bitcoin buyer.
Bitcoin, the world's largest and most well-known cryptocurrency, continues its upward trend, reaching an intraday high of $107,148, with the latest price at $106,877, up 5.43% from last Friday's close. The second-ranked digital currency, Ethereum, rose 1.85% to $3,975.70.
IG analyst Tony Sycamore said, "We are currently in an uncertain range. The next number the market expects is $110,000. The pullback many anticipated hasn't happened because we now have this news."
As investors bet that the incoming Trump administration will bring a more favorable regulatory environment, Bitcoin and cryptocurrencies have become the focus, boosting confidence in alternative currencies. By 2024, Bitcoin is expected to rise by about 150%.
Trump told CNBC late last week: "We are going to do some great things in the cryptocurrency space because we don’t want China or any other country—not just China—accepting cryptocurrencies. We want to be the leader."
When asked if he plans to establish cryptocurrency reserves similar to the Strategic Petroleum Reserve, Trump said, "Yes, I think so." He advocated for the same earlier this year.
According to data provider CoinGecko, as of July, governments worldwide hold 2.2% of Bitcoin's total supply, with the U.S. owning nearly 200,000 Bitcoins worth over $20 billion at current levels.
Data site BitcoinTreasuries shows that China, the UK, Bhutan, and El Salvador are other countries holding large amounts of Bitcoin.
Other countries have also been considering cryptocurrency strategic reserves.
Russian President Vladimir Putin stated earlier this month that the current U.S. government is using the dollar for political purposes, undermining the dollar's status as a global reserve currency and forcing many countries to turn to alternative assets, including cryptocurrencies.
"For example, Bitcoin, who can ban it? No one can," Putin said.
However, there are also skeptics. Federal Reserve Chairman Jerome Powell compared Bitcoin to gold earlier this month. Analysts also noted that any such initiatives would take time to implement.
Chris Weston, head of research at Pepperstone, said: "I think we still need to be cautious about BTC strategic reserves, at least considering that this situation is unlikely to happen quickly."
"Of course, any comments from Trump that make people look forward to the progress of the strategic reserve plan are obviously positive, but this will also bring some consequences that need careful consideration and full communication to market participants."
Cryptocurrency promotion
Since November 5, when Trump and many other pro-cryptocurrency candidates were elected, Bitcoin has surged over 50%. According to CoinGecko, the total value of the cryptocurrency market has nearly doubled this year, reaching a new high of $3.8 trillion.
Trump once called cryptocurrency a scam, but during the campaign, he embraced digital assets and promised to make the U.S. the "crypto capital of the world."
Trump appointed former PayPal executive David Sacks as the White House's director of artificial intelligence and cryptocurrency this month. Sacks is a close friend of Trump's advisor and major donor Elon Musk.
Trump also stated that he would nominate pro-cryptocurrency Washington lawyer Paul Atkins to be the chairman of the U.S. Securities and Exchange Commission.
On Friday, exchange operator Nasdaq announced that MicroStrategy, led by CEO Michael Saylor, will be included in the Nasdaq 100 index, with the change taking effect before the market opens on December 23.
MicroStrategy, a major investor in crypto assets, has seen its stock price soar more than sixfold this year, reaching a market value of nearly $94 billion. It is now the largest corporate holder of cryptocurrency.
Matthew Dibb, chief investment officer of cryptocurrency asset management firm Astronaut Capital, said that as part of the Nasdaq 100 index, investors will buy MicroStrategy's stock to reflect a broader index holding, thereby increasing the stock's value and allowing the company to purchase more cryptocurrencies through debt and stock issuance.
He said, "The inclusion seems a bit unexpected, but it hasn't dampened people's excitement. Many believe this is the beginning of a capital cycle that could push up Bitcoin's spot price."#BTC再创新高