Bitcoin Blasts Past US$107,000 as Hopes Grow for a U.S. Crypto Reserve

Bitcoin’s meteoric rally continued over the weekend, soaring above the US$107,000 mark after US President-elect Donald Trump reiterated plans to establish a national Bitcoin reserve—akin to America’s strategic oil reserve. The announcement has fuelled optimism among crypto investors, pushing market sentiment into overdrive.

A New Era for Crypto Under Trump?

Bitcoin, the world’s largest cryptocurrency, hit an intraday high of US$107,148 before settling near US$106,877, up more than 5% since late Friday. Meanwhile, Ethereum (ETH) rose 1.85% to US$3,975.70, maintaining its number two position in the crypto hierarchy.

“We’re in uncharted territory,” said Tony Sycamore, an analyst at online trading provider IG. “The next big psychological marker will be $110,000. Traders were waiting for a significant pullback, but Trump’s comments changed the game. The market just kept running.”

Crypto markets are buzzing with anticipation that the incoming Trump administration will bring a more accommodating regulatory environment. Investor enthusiasm is reflected in Bitcoin’s remarkable performance: up about 150% in 2024 so far.

“We’re going to do something great with crypto,” Trump told CNBC. “We don’t want China or anyone else to dominate this space. We want to lead.”

When asked about creating a strategic Bitcoin reserve, Trump responded, “Yeah, I think so,” mirroring a stance he took earlier this year.

Government Crypto Stashes on the Rise

Governments worldwide are estimated to hold around 2.2% of Bitcoin’s total supply, according to CoinGecko data. The US is believed to hold nearly 200,000 BTC, worth over $20 billion at current prices. Other nations, including China, the UK, Bhutan, and El Salvador, have also amassed notable Bitcoin reserves.

Russia is eyeing the trend as well. Earlier this month, President Vladimir Putin noted a shift toward alternative assets like crypto. “For example, Bitcoin—who can prohibit it? No one,” Putin remarked.

Still, not everyone is convinced. Federal Reserve Chair Jerome Powell recently compared Bitcoin to gold, hinting at scepticism. Some analysts, like Chris Weston of Pepperstone, urge caution. “A US strategic BTC reserve won’t happen overnight,” he said. “It’s bullish talk, but any meaningful implementation would need careful consideration and market signalling.”

The Broader Market Upswing

Bitcoin’s surge has been particularly notable since Trump’s November 5 victory, with crypto bulls expecting industry-friendly policies. The entire crypto market’s total value now sits near a record $3.8 trillion, nearly double its value from the start of the year.

Trump’s pro-crypto stance marks a significant shift from his earlier scepticism when he labelled digital assets as a “scam.” This month, he named former PayPal executive David Sacks as the White House czar for artificial intelligence and cryptocurrencies—a move that signals his commitment to leading in both innovation spheres.

Trump also plans to nominate pro-crypto Washington attorney Paul Atkins to head the SEC, a regulator that plays a crucial role in the digital asset landscape.

Institutional FOMO Continues

In the corporate sphere, Nasdaq announced that MicroStrategy, a company led by Bitcoin stalwart Michael Saylor, will join the Nasdaq-100 Index on December 23. MicroStrategy’s share price has soared over sixfold this year, thanks in large part to its massive Bitcoin holdings, now the largest among publicly traded companies.

“The inclusion in the Nasdaq-100 surprised some, but it’s a testament to how deeply crypto is now woven into corporate strategy and investor expectations,” said Matthew Dibb, CIO at Astronaut Capital. “This creates a feedback loop: as Bitcoin’s price rises, so does MicroStrategy’s valuation, which in turn feeds more interest in Bitcoin.”

With Bitcoin pushing into six-figure territory, growing institutional support, and the prospect of a US strategic reserve on the horizon, the crypto market’s next chapter looks poised to be nothing short of historic.