“The price of bitcoin exceeded 107 thousand. dollars: market hopes for strategic reservesBitcoin set a new all-time high of $107,822 amid Trump’s statement about the possible creation of a government cryptocurrency reserve. Other cryptocurrencies are also showing gains as traders await the Fed’s rate decision.”, — write on: unn.ua
As of 09:06 ET, bitcoin was up 3.5% at $107,380, slightly below the all-time high of $107,822 set the day before.
The latest surge is linked to Trump’s statement in an interview with CNBC, where he raised the issue of the prospect of creating a government-run Bitcoin reserve similar to the US Strategic Petroleum Reserve. He also promised favorable conditions for the development of cryptocurrencies in the event of his election victory.
Despite this, analysts remain skeptical about the creation of such a reserve. In particular, Compass Point notes that the formation of the reserve would require the approval of Congress, where the Republicans, although they have a majority, but a high budget deficit limits the possibility of additional spending. It also notes that even if the reserve is created by executive order, it can be revoked by subsequent administrations.
The US Department of Justice currently holds approximately 200,000 bitcoins seized from criminals that could potentially form the basis of the reserve, but the mechanism for implementing such a move remains unclear.
The market for other cryptocurrencies showed more subdued optimism compared to Bitcoin. Yes, Ether rose 2.5% to $4,007.71, approaching 2021 highs, while XRP jumped 11% to $2.64. Solana and Cardano added more than 3%, while Polygon was flat. Among meme tokens, Dogecoin rose 2.8%.
Traders are closely watching the Fed meeting on Wednesday, where a rate cut of 25 basis points is expected. However, special attention will be focused on further forecasts of the central bank regarding interest rates. If the Fed signals a slower pace of easing in 2025, it could keep rates high for longer, potentially weighing on Bitcoin and other cryptocurrencies.
We will remind
Yesterday, Bitcoin rose to a record high above $106,000 on Monday after US President-elect Donald Trump said he plans to create a United States strategic bitcoin reserve similar to a strategic oil reserve, fueling the enthusiasm of crypto market players