Bitcoin's price surged to a record high of $107,148 on December 16, 2024, following comments from President-elect Donald Trump about potential regulatory changes favorable to cryptocurrencies. The cryptocurrency is up approximately 150% this year.
Trump indicated plans to establish a U.S. Bitcoin strategic reserve, akin to the country's strategic oil reserve, which has generated optimism among investors. Ethereum also saw gains, rising 1.85% to $3,975.70.
Analysts noted that the market's current trajectory is unprecedented, with expectations of reaching $110,000. Trump's administration is anticipated to create a more favorable environment for cryptocurrencies, as he aims to position the U.S. as a leader in the sector.
As of July, governments worldwide held 2.2% of Bitcoin's total supply, with the U.S. owning nearly 200,000 Bitcoins valued over $20 billion. Other nations, including China and El Salvador, have also accumulated significant amounts of Bitcoin.
Despite the optimism, some experts caution against hasty conclusions regarding the establishment of a Bitcoin reserve, emphasizing that such moves would require careful planning and implementation.
In related news, Nasdaq announced that MicroStrategy, a major investor in Bitcoin, will join the Nasdaq-100 Index, effective December 23. The company's stock has increased significantly this year, reflecting the growing institutional interest in cryptocurrencies.