Bitcoin hits all-time high amidst Trump’s pro-crypto stance
Bitcoin, the world’s largest and most prominent cryptocurrency, hit an all-time high on 16th December, crossing the $107,000 mark. This unprecedented surge set a new milestone in the crypto world and came after U.S. President-elect Donald Trump shared his plan to create a U.S. Bitcoin strategic reserve, similar to its strategic oil reserve.
Market reaction to Trump’s announcement
Trump’s transformation from a crypto skeptic to a vocal supporter has been significant. By appointing pro-crypto leaders like David Sacks and Paul Atkins, Trump has clearly signalled his administration’s intent to back the crypto ecosystem.
“We’re gonna do something great with crypto because we don’t want China or anybody else – not just China but others are embracing it – and we want to be the head,” Trump told CNBC. When asked if he plans to build a crypto reserve like oil reserves, Trump said: “Yeah, I think so.” He advocated the same thing earlier this year.
Bitcoin has seen an astonishing 150 percent increase in 2024 alone. This session’s high was $107,148, and it was most recently at $106,877, up 5.43 percent from late Friday. Ether, the world’s second-largest digital currency, was up 1.85 percent at $3,975.70.
Investor enthusiasm has never been higher. Retail traders are eager to join the frenzy, while institutions now consider Bitcoin a crucial component of diversified portfolios. Tony Sycamore, an analyst at IG, said, “We’re in blue sky territory here. The next figure the market will be looking for is $110,000. The pullback that a lot of people were waiting for just didn’t happen, because now we’ve got this news.”
Global cryptocurrency trends
Countries such as China, Bhutan, and El Salvador have already invested in Bitcoin reserves. If the U.S. were to join them, it would further cement cryptocurrency’s role in global finance. Russian President Vladimir Putin has also emphasised Bitcoin’s strategic importance, criticised the dominance of the U.S. dollar, and advocated for alternative assets.
“For example, Bitcoin, who can prohibit it? No one,” Putin said.
Federal Reserve Chair Jerome Powell likened Bitcoin to gold, emphasising its volatility and limited practical use.
Chris Weston, head of research at Pepperstone, said, “I think we still need to be cautious on a BTC strategic reserve, and at least consider that this is not likely to happen anytime soon. Of course, any comment from Trump that offers an increased degree of hope that plans for a strategic reserve are evolving are an obvious tailwind, but this would come with consequences which would need to be carefully considered and well telegraphed to market players.”
On Friday, exchange operator Nasdaq said MicroStrategy, led by chief executive Michael Saylor, will be added to the Nasdaq-100 Index, with the change coming into effect before the market opens on 23rd December.
MicroStrategy, the largest corporate holder of cryptocurrency, has seen its share price increase more than six-fold this year, bringing its market value to almost $94 billion. Nasdaq chief executive Michael Saylor stated that it will be added to the Nasdaq-100 Index, with the change coming into effect before the market opens on 23rd December.
Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, said, “The inclusion seems a bit unexpected, but that hasn’t stopped the excitement of what many believe to be the start of a looping cycle of capital that could potentially drive up the spot Bitcoin price.”
