(CLO) Bitcoin hit a record high above $106,000 on Monday after President-elect Donald Trump suggested he plans to create a U.S. Bitcoin strategic reserve fund, similar to the country's strategic oil reserve.
Bitcoin, the world's largest cryptocurrency, hit a high of $106,533 and has since corrected to $103,917, up 2.6% from its previous high. Ether, the second-largest cryptocurrency, also recorded a slight gain of 0.4% to $3,918.
Bitcoin and cryptocurrencies have attracted strong attention this year, especially amid investors' expectations that the incoming administration of President-elect Donald Trump will create a more favorable regulatory environment for the industry. Bitcoin has increased 192% this year.
“We’re going to be the leader in cryptocurrency,” Trump told CNBC. Asked if he had plans to build a cryptocurrency reserve like the oil reserve, Trump replied: “I think so.”
Illustration: AI
As of July, governments around the world held about 2.2% of the total Bitcoin supply, according to data from CoinGecko. The United States currently owns nearly 200,000 Bitcoins, worth more than $20 billion at current prices.
China, UK, Bhutan and El Salvador are countries with notable Bitcoin reserves.
Russian President Vladimir Putin said the US government is undermining the dollar by using it for political purposes. This has led many countries to look to alternative assets, including cryptocurrencies. "For example, bitcoin, who can ban it? No one," Putin said.
Federal Reserve Chairman Jerome Powell has likened Bitcoin to gold. Chris Weston, director of research at Pepperstone, recommends caution when considering the possibility of countries accumulating Bitcoin as strategic reserves in the near future.
“Trump’s comments raise expectations about strategic reserve plans, but this also comes with consequences that need to be carefully considered and clearly communicated to investors.”
Bitcoin has surged more than 50% since the November 5 election, when Donald Trump was elected along with many other crypto-friendly candidates. The total value of the cryptocurrency market has nearly doubled this year, reaching a record of more than $3.8 trillion, according to CoinGecko.
Donald Trump, who previously called cryptocurrencies a scam, endorsed digital assets during his election campaign and promised to make the United States “the leading global hub for cryptocurrencies.”
Ha Trang (according to GI, MicroStrategy, Reuters)
Source: https://www.congluan.vn/bitcoin-lai-tang-vot-sau-phat-bieu-cua-ong-donald-trump-post325956.html
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