Bitcoin soars past $107k on Trump’s reserve plan

Bitcoin surged to over $107,000 late on Monday following President-elect Donald Trump’s announcement of plans to establish a US bitcoin strategic reserve, akin to the strategic oil reserve, fuelling excitement among cryptocurrency enthusiasts.

Investor sentiment improved with MicroStrategy (MSTR.O) joining the Nasdaq 100 index, potentially attracting more investments to the software company now known for buying bitcoin.

Bitcoin, the largest and most well-known cryptocurrency, reached a high of $107,148 before settling at $106,877, marking a 5.43 per cent increase from Friday. The second-largest digital currency, ether, also saw a 1.85 per cent rise to $3,975.70.

“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG. “The next figure the market will be looking for is $110,000. The pullback that a lot of people were waiting for just didn’t happen, because now we’ve got this news.”

Bitcoin and cryptocurrencies have gained attention as investors anticipate a more favourable regulatory environment under the incoming Trump administration. Bitcoin has surged by approximately 150 per cent in 2024.

Attribution: Reuters

Subediting: M. S. Salama