Bitcoin (BTC) has reached a remarkable milestone, surging to over $106,000, driven by a wave of investor optimism. This surge is largely attributed to the potential establishment of a Bitcoin strategic reserve fund proposed by President-elect Donald Trump, alongside a growing institutional interest, notably highlighted by MicroStrategy's inclusion in the Nasdaq.
On Monday, Bitcoin, recognized as the largest cryptocurrency by market capitalization, achieved its all-time high just after Trump's announcement. He suggested that the U.S. should consider creating a strategic reserve for Bitcoin, akin to its strategic oil reserve, which significantly excited the cryptocurrency community.
“We are navigating uncharted territory,” remarked Tony Sycamore, an analyst at IG. “The market is now aiming for the next psychological target of $110,000. The anticipated pullback has not occurred, and this new development has only intensified the upward momentum.”
In a recent interview, Trump emphasized his vision for the U.S. to take a leading position in the cryptocurrency sector. “We’re going to do something remarkable with crypto,” he stated. “We don’t want to see China or any other nation dominate this space; we aim to lead.” When questioned about the possibility of establishing a crypto reserve similar to the U.S. Strategic Petroleum Reserve, Trump affirmed, “Yes, I believe so.”
Sycamore added, “We find ourselves in blue sky territory here. The market is keenly focused on the next milestone of $110,000. Contrary to expectations, the anticipated market correction did not occur, primarily due to the recent news.”
Market analysts are also noting potential short-term consolidations, as selling volumes may outpace buying volumes. Shekhar indicated that resistance levels at $106,533 and liquidity clusters near $100,000 might prompt some investors to take profits. However, given the robust institutional interest and strong buying momentum, Bitcoin is projected to target ranges between $108,000 and $110,000.
Performance of Other Cryptocurrencies
In contrast, several other cryptocurrencies faced declines, with SUI dropping 7.67%, FTM plummeting 17%, ENA decreasing by 14.82%, and STX falling 10.79%. Ethereum, however, increased by 1.76%, reaching $3,967.09, while Solana rose moderately by 0.44% to $221.88.
Since Trump's election victory and the success of other pro-crypto candidates in the November 5 elections, Bitcoin's value has surged by more than 50%. According to CoinGecko, the total market capitalization of cryptocurrencies has nearly doubled this year, achieving a record high of $3.8 trillion.
In a noteworthy development, Nasdaq announced on Friday that MicroStrategy, one of the largest corporate investors in Bitcoin, will be included in the Nasdaq-100 Index. The company’s stock has skyrocketed more than sixfold this year, elevating its market valuation close to $94 billion, thereby solidifying its position as the largest corporate holder of Bitcoin globally.
Zainab Y.
Also on site :
- Pentagon chief says ready to 'fight and win' against China, urges Asian allies to boost defense spending
- Trump Officials Unveil Budget Cuts to Aid for Health, Housing and Research
- Arctech to Supply 175 MW of Solar Trackers for Landmark Green Hydrogen Project in Oman