“The cryptocurrency market hopes that the administration of the new US president will create more favorable conditions for the market.”, — write: www.unian.ua
The cryptocurrency market hopes that the administration of the new US president will create more favorable conditions for the market.
Over the year, bitcoin has grown by 192% / photo REUTERSOn Monday, December 16, Bitcoin soared to an all-time high. The cryptocurrency is worth more than $106,000 per coin after President-elect Donald Trump announced plans to create a strategic bitcoin reserve in the US.Reuters writes that Bitcoin, the largest and most famous cryptocurrency in the world, reached a maximum of $106,533, and in the last trades it increased by 3.2% to $104,462. The smaller cryptocurrency Ether rose 1.5% to $3,965.
“The next number the market will be aiming for is $110k. The pullback that many expected just didn’t happen because now we have this news,” said Tony Sycamore, an analyst at IG.
Bitcoin and cryptocurrencies are in the spotlight as investors hope the Trump administration will create a more favorable regulatory environment, boosting sentiment around the alternative currency. Bitcoin has grown by 192% in a year.
“We’re going to do something big with cryptocurrency because we don’t want China or anybody else — not just China, but other countries — to own it, and we want to be in charge,” Trump said in an interview with CNBC.
When asked if he plans to create a cryptocurrency reserve similar to oil reserves, Trump said: “Yes, I think so.”
According to the CoinGecko company, as of July, the governments of various countries in the world owned 2.2% of the total volume of bitcoin, and the United States – almost 200 thousand bitcoins, the value of which at the moment is more than 20 billion dollars.
China, the United Kingdom, Bhutan, and El Salvador also have significant Bitcoin holdings. Other countries are considering creating cryptocurrency strategic reserves.
Russian President Vladimir Putin has previously said that the current US administration is undermining the role of the US dollar as a reserve currency in the global economy by using it for political purposes, forcing many countries to turn to alternative assets, including cryptocurrencies.
“For example, Bitcoin, who can ban it? Nobody,” Putin said.
However, there are also skeptics: the head of the US Federal Reserve System, Jerome Powell, has previously compared bitcoins to gold. Analysts also note that any such move will take time.
“I think we still need to be cautious about the BTC strategic reserve and at least consider that this is unlikely to happen anytime soon,” said Chris Weston, head of research at Pepperstone. “Of course, any comments from Trump that give more hope that plans to create a strategic reserve are developing is a tailwind, but it will entail consequences that must be carefully considered and well informed by market participants.”
Bitcoin – Latest NewsOn November 21, Bitcoin surpassed the $98,000 mark, but less than a week later, on November 26, the price of Bitcoin fell to $90,000 per coin.
On December 5, Bitcoin surpassed the $100,000 mark for the first time in history amid hopes that Trump and his administration would support the cryptocurrency market.
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