Bitcoin surges to an all-time high above $106,000, fueled by speculation about a potential U.S. Bitcoin Strategic Reserve under President-elect Donald Trump. The cryptocurrency rally gains traction as Trump signals plans to position the U.S. as a global leader in digital assets.
Bitcoin reaches $106,533 on Monday before settling at $104,462, marking a 3.2% increase. Ethereum also sees gains, climbing by 1.5% to $3,965.
Confidence among investors grows as Bitcoin holder MicroStrategy joins the Nasdaq 100 index, hinting at increased institutional interest. Analysts highlight the strong bullish sentiment propelling Bitcoin’s historic rise.
“This is a pivotal moment for Bitcoin,” says Tony Sycamore, an analyst at IG. “The market is now aiming for $110,000, spurred by optimism over Trump’s supportive stance on crypto.”
In a recent interview, Trump signals a shift in policy by expressing support for cryptocurrencies and floating the idea of a national Bitcoin reserve. “We want to lead in crypto because we don’t want China or others dominating,” he says. When asked about creating a Bitcoin reserve, Trump responds, “Yes, I think so.”
The concept of a national crypto reserve is gaining attention as global governments adopt similar strategies. Reports show that 2.2% of Bitcoin’s total supply is held by governments, with the U.S. owning nearly 200,000 Bitcoins worth over $20 billion. Other holders include China, El Salvador, the UK, and Bhutan.
Nations are increasingly exploring cryptocurrencies as alternatives to traditional reserve currencies. Russian President Vladimir Putin recently criticizes the U.S. dollar’s politicization and highlights Bitcoin as an unrestricted asset.
“Countries are turning to alternatives like Bitcoin,” Putin says. “No one can stop it.”
Despite the excitement, some remain cautious. Federal Reserve Chair Jerome Powell compares Bitcoin to gold, emphasizing its speculative nature. Chris Weston, head of research at Pepperstone, notes that establishing a strategic reserve would be a complex and lengthy process.
“While Trump’s comments energize the market, implementing such a reserve involves significant challenges,” Weston says.
Since the November 5 election, Bitcoin’s value has soared over 50%, and the global cryptocurrency market now exceeds $3.8 trillion.
Trump, who once dismissed cryptocurrencies as a scam, now embraces them, promising to make the U.S. a global hub for digital assets. He appoints former PayPal executive David Sacks as the White House crypto czar and nominates crypto advocate Paul Atkins to head the Securities and Exchange Commission.
In Nigeria, blockchain experts urge the government to act swiftly to harness opportunities in the global crypto market. Obinna Iwuno, President of the Stakeholders in Blockchain Association of Nigeria (SiBAN), stresses the importance of proactive policies to prevent losing ground to foreign markets.
“Nigeria must position itself to benefit from the growing crypto industry, especially with a U.S. administration showing support for digital assets,” Iwuno says, emphasizing the need for timely government intervention.
