Bitcoin rose to a record high, surpassing $106,000, on Monday, influenced by pro-cryptocurrency statements from President-elect Donald J. Trump. The cryptocurrency achieved a peak of $106,195 early Monday before dropping slightly, but it regained momentum by the afternoon, hitting $106,320.90. Trump’s comments on CNBC about potentially establishing a U.S. Strategic Bitcoin Reserve contributed to the price surge. He suggested that the U.S. should lead in crypto adoption, comparing it to the Strategic Petroleum Reserve.
Trump’s plan could affect bitcoin trading due to the cryptocurrency’s limited supply. Out of a total potential supply of 21 million bitcoins, 19.9 million are already available. While Trump’s election has fueled optimism for deregulation among investors, Bitcoin’s value has increased significantly, rising by 190 percent in 2024.
Data from BitcoinTreasuries indicates that national governments own about 13.9 percent of all bitcoins. The United States and China are the largest holders, with the U.S. owning nearly 200,000 bitcoins valued at approximately $20.7 billion and China holding 190,000 bitcoins.
Simultaneously, tech firm MicroStrategy is set to join the Nasdaq 100 index, further boosting bitcoin’s value. As the largest corporate bitcoin holder, MicroStrategy possesses around 425,000 bitcoins, accounting for about 2 percent of the overall market value. According to Simon Peters, an analyst at Etoro, this inclusion in the index might lead to increased stock purchases.
The upward trend, termed the ‘Trump trade,’ has enhanced interest in cryptocurrencies, with investors anticipating reduced regulation under Trump’s administration. The nomination of Paul Atkins to replace current Securities and Exchange Commission (SEC) commissioner Gary Gensler—who is unpopular among crypto enthusiasts for his critical stance on digital assets—has added to Bitcoin’s recent gains.