Bitcoin soared to a record high on Monday, surpassing $107,000 amid anticipation of an interest rate cut by the Federal Reserve later this week. Additionally, President-elect Donald Trump hinted at establishing a U.S. bitcoin strategic reserve akin to the strategic oil reserve, sparking excitement within the crypto community.
Investor optimism was further boosted by the recent announcement of MicroStrategy’s inclusion in the Nasdaq 100 index, potentially attracting more investments for the software firm turned bitcoin buyer.
The idea of a strategic reserve for Bitcoin gained traction following Trump’s comments in a CNBC interview where he expressed intentions to make significant strides in the cryptocurrency space, positioning the U.S. ahead of countries like China. When asked about creating a crypto reserve comparable to oil reserves, Trump responded affirmatively, signaling a potential shift in the country’s approach to digital assets. Notably, countries such as China, UK, Bhutan, and El Salvador already hold substantial amounts of bitcoins, with others contemplating similar strategic reserves.
In a global context, Russian President Vladimir Putin recently criticized the U.S. for politicizing the dollar’s role as the global reserve currency, prompting several nations to explore alternative options like cryptocurrencies. Despite growing interest in Bitcoin reserves, some experts remain cautious. Chris Weston, head of research at Pepperstone, advised prudence, suggesting that the establishment of a BTC strategic reserve may not materialize in the near future.
Bitcoin’s remarkable performance in 2024 has been fueled by a surge of over 50% since the November election, which saw a pro-crypto outcome. The cryptocurrency market’s total value has nearly doubled this year, exceeding $3.8 trillion. Trump’s nomination of pro-crypto figure Paul Atkins to lead the SEC further underscores the administration’s support for digital assets.
In another significant development, Bitcoin achieved a milestone in its Q4 rally as its Energy Value metric surpassed $100,000. The Energy Value SMA reached almost $100,500, with projections indicating further growth. Investors are closely monitoring the Federal Reserve’s upcoming policy meeting, with expectations of a 25-basis-point interest rate cut. Such a move could positively impact the Bitcoin price, which is currently trading at $107,095, reflecting a 3% increase in the last 24 hours.