Morning Bid: Making Bitcoin Great – and above $105,000

Bitcoin has reached a new milestone, soaring above $105,000 for the first time in history, spurred by comments from U.S. President-elect Donald Trump regarding the creation of a strategic bitcoin reserve. In an interview, Trump expressed his intent to bolster U.S. crypto dominance to prevent other countries, including China, from gaining an edge. This announcement, coupled with MicroStrategy’s inclusion in the Nasdaq 100, contributed to the surge, raising speculation about Bitcoin’s next potential target of $110,000.

MicroStrategy, the largest corporate holder of Bitcoin with nearly 425,000 coins, saw its stock rise, reflecting growing optimism in the crypto sector. Bitcoin’s rise this year is also fueled by the launch of U.S. exchange-traded funds tied to the digital asset, attracting billions in investments. BlackRock has recommended investors allocate up to 2% of their portfolios to Bitcoin, citing its role as a diversification tool in asset management.

Trump’s plan to acquire and hold a significant amount of Bitcoin could limit market liquidity and introduce volatility, should the government decide to sell. While the exact mechanics of a strategic reserve remain unclear, experts suggest the Federal Reserve or the Treasury Department could manage the reserve. With pro-crypto figures like David Sacks and Paul Atkins poised for key roles in his administration, Trump’s stance signals further regulatory shifts in favor of the cryptocurrency market.