The price of bitcoin has hit a new all-time high after US President-elect Donald Trump confirmed plans to create a BTC federal reserve.
The world’s leading cryptocurrency rose nearly 5 per cent following Trump’s latest comments, reaching a new record above $106,000 (£84,000) on Monday morning.
The incoming president first proposed a bitcoin federal reserve during an appearance at the Bitcoin 2024 conference in July, promising to make the US the “bitcoin superpower” of the world.
Speaking to CNBC on Sunday, Trump suggested his administration would focus on overhauling regulation and introduce favourable policies that would boost crypto.
“We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,” Trump told CNBC, adding that his plans involved a strategic reserve similar to the US’s oil reserve.
Other countries have also been considering cryptocurrency strategic reserves.
Russian President Vladimir Putin earlier this month questioned the need to hold state reserves in foreign currencies, saying that domestic investment of such reserves was more attractive.
Putin said the current US administration was undermining the role of the US dollar as the 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 prohibit it? No one,” Putin said.
There are skeptics though, with Federal Reserve Chair Jerome Powell likening bitcoin to gold earlier this month.
“People are not using it as a form of payment, or as a store of value. It’s highly volatile, it’s not a competitor for the dollar.”
Bitcoin has surged more than 50 per cent since the election on 5 November that saw Trump elected along with many other pro-crypto candidates.
The price surge has pushed bitcoin’s market cap above $2 trillion, while the overall cryptocurrency market is now approaching $4 trillion.
“We believe the stage is set for even greater highs in the months ahead,” Nigel Green, chief executive of financial services firm deVere Group, told The Independent.
“I’ve previously predicted that following Donald Trump’s inauguration, it could surge to $120,000. I now believe growing investor FOMO (fear of missing out) and increasing institutional investment can be expected to push the price to $150,000 by mid-2025.
“This dual momentum is fueling the crypto market’s resurgence and establishing bitcoin as a ‘must-have’ asset in portfolios.”
Additional reporting from agencies.