The price of Bitcoin surged to a record high following the announcement of newly elected U.S. President Donald Trump’s victory. Trump revealed his plans to establish a “strategic Bitcoin reserve” for the United States, similar to the country’s oil reserves. This announcement sparked significant optimism in the cryptocurrency market.
On Monday, Bitcoin’s price soared to $107,148 at its peak before settling at $106,877, reflecting a 5.43% increase. Ethereum also saw a boost, rising by 1.85% to $3,975.70, according to Al Jazeera.
In a recent interview with CNBC, Trump stated, “We are going to do some incredible things with crypto because we don’t want China or any other country to lead. We want to be in the front.”
Globally, governments currently hold approximately 2.2% of Bitcoin’s total supply, with the United States possessing around 200,000 Bitcoins, valued at over $20 billion based on current market prices.
Market analysts suggest that while the proposal could have far-reaching implications, its implementation may take time. Chris Weston, Head of Research at Pepperstone, remarked, “It’s too early to be overly optimistic about a strategic Bitcoin reserve, but any positive comments from Trump will certainly encourage the market.”
Since the U.S. elections in November, Bitcoin’s price has surged by nearly 50%. Trump’s pro-crypto stance and the prospect of crypto-friendly policies under his administration have fueled investor optimism. The total market value of cryptocurrencies has doubled this year, reaching a record $3.8 trillion.
Recently, Trump appointed former PayPal executive David Sacks to oversee AI and crypto matters at the White House. He also announced the nomination of pro-crypto attorney Paul Atkins to lead the Securities and Exchange Commission (SEC).
Analysts believe these moves could stabilize the global crypto market and position the United States as a leader in the cryptocurrency industry.
