“Bitcoin reached a new record above $106,000 after Trump’s announcementBitcoin reached a new record of $106,533 after the US President-elect announced the creation of a strategic cryptocurrency
reserve. The market capitalization of cryptocurrencies increased to $3.8 trillion.”, — write: unn.ua
Details
Bitcoin, the world’s largest and best-known cryptocurrency, hit a high of $106,533 during trading. The smaller cryptocurrency Ether rose by 1.5% to $3,965.
“We are in blue sky territory,” said Tony Sycamore, an analyst at IG. – “The next number the market will be looking for is $110,000. The pullback that many people were expecting just didn’t happen because now we have this news.
Investor sentiment was also reportedly boosted by MicroStrategy’s inclusion in the Nasdaq 100 technology index, which is likely to lead to more cash inflows for the software company, which has become a bitcoin buyer.
Bitcoin and crypto have been in the spotlight as investors bet that the new Trump administration will introduce a friendlier regulatory environment, boosting sentiment around the alternative currency. Bitcoin is up 192% year-to-date.
“We’re going to do something big with cryptocurrency because we don’t want China or anybody else – not just China, but others – to adopt it, and we want to be the leaders,” Trump told CNBC late last week.
When asked if he plans to create a cryptocurrency reserve similar to oil reserves, Trump said: “Yeah, I think so.
According to data provider CoinGecko, as of July, governments around the world held 2.2% of the total bitcoin, with the United States holding nearly 200,000 bitcoins, currently worth more than $20 billion.
China, the United Kingdom, Bhutan, and El Salvador are other countries with a significant number of bitcoins, according to the BitcoinTreasuries website.
Other countries are also considering creating strategic cryptocurrency reserves.
However, there are skeptics: earlier this month, Federal Reserve Chairman Jerome Powell compared bitcoin to gold. Analysts also note that the implementation of any such step will take time.
“I think we still need to be cautious about a strategic reserve of BTC and at least consider that it is unlikely to happen anytime soon,” said Chris Weston, head of research at Pepperstone.
“Of course, any comment from Trump that raises hopes that plans for a strategic reserve are moving forward is an obvious tailwind, but it will have implications that need to be carefully considered and clearly communicated to market participants,” he said.
It is noted that bitcoin has grown by more than 50% since the November 5 election, in which Trump was elected. The total value of the cryptocurrency market almost doubled in a year and reached a record $3.8 trillion, according to CoinGecko.
Market capitalization of cryptocurrencies reached $4 trillionDec 13 2024, 10:36 AM • 14788 views