Bitcoin rallied to a new all-time high on Monday, breaking through $107,000 as investors awaited an expected interest rate cut by the Federal Reserve later this week. Also, President-elect Donald Trump indicated plans to create a U.S. bitcoin strategic reserve similar to its strategic oil reserve, sparking enthusiasm in the crypto community.
The investor sentiment also got a rush from the recent news of MicroStrategy entering the Nasdaq 100 index which will likely lead to more inflows for the software firm turned into bitcoin buyer.
Remarkably, Bitcoin is up 151% for the year. Just recently, Trump in an interview with CNBC revealed plans of ‘doing something great with crypto’ while he also emphasized on leading the domain, leaving behind countries like China.
When asked if he plans to build a crypto reserve similar to oil reserves, Trump said: “Yeah, I think so”. Notably, China, UK, Bhutan and El Salvador are the other countries with a significant amount of bitcoins. Other countries have also been considering cryptocurrency strategic reserves.
Earlier this month, Russian President Vladimir Putin had stated that the U.S. is weakening the dollar’s role as the global reserve currency by using it for political purposes, leading many countries to seek alternatives like cryptocurrencies.
There are critics as well, as Chris Weston, head of research at Pepperstone shared “I think we still need to be cautious on a BTC strategic reserve, and at least consider that this is not likely to happen anytime soon.”
Bitcoin has surged more than 50% since the Nov. 5 election that saw a pro-crypto victory. The total value of the cryptocurrency market has almost doubled over the year so far to hit a record over $3.8 trillion. Trump has also nominated the pro-crypto Paul Atkins to head the SEC.
Bitcoin has hit another massive milestone in its splendid Q4, 2024, rally as its Energy Value metric has hit $100,000. Bitcoin Energy Value SMA jumped today to almost $100,500. Raw metric for the chart almost hit $105,000, as demonstrated by Edwards. Capriole Investments’ Charles Edwards had predicted Bitcoin Energy Value to reach $100,000 by 2025 back in early March 2020.
Besides, Investors are expecting the Fed to lower interest rates this week during its two-day policy meeting, which will conclude Wednesday. The CME FedWatch Tool currently forecasts a 96% chance of a 25-basis-point cut. That would likely be bullish for the Bitcoin price. Bitcoin is currently trading at $107,095, up over 3% in the last 24 hours.
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