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Bitcoin surges more than 5 percent after Trump reaffirms plans for national strategic crypto reserve, as optimism grows
Bitcoin surged to a new record high on Monday following positive comments on the cryptocurrency by US president-elect Donald Trump.
The digital asset rose about 5 percent, taking it over $107,000 (£84,000), the latest surge in a trend that has seen its price rise more than 50 percent since Trump’s re-election 5 November.
Trump previously criticised cryptocurrencies, calling them a “scam”, but praised them during his campaign to the surprise of many.
Speaking at a Bitcoin conference in July, he promised to make the US the “Bitcoin superpower” of the world and suggested creating a strategic reserve of the cryptocurrency.
‘Something great’
He reiterated his intention in an interview with CNBC on Sunday in which he said his administration would overhaul regulation and introduce policies favourable to digital assets.
“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.
He added that his plans involved a strategic reserve similar to the US’ oil reserve.
Financial analysts have said Trump’s comments, along with the “fear of missing out”, or FOMO, have combined to drive investors to buy into Bitcoin and other cryptocurrencies.
Some have projected Bitcoin could reach $120,000 by the end of this year and $150,000 by mid-2025.
The recent price rise has driven Bitcoin’s market capitalisation to over $2tn, with the cryptocurrency market as a whole worth more than $4tn.
As part of his pro-crypto plan Trump has said he will appoint pro-crypto attorney Paul Atkins as the head of the Securities and Exchange Commission (SEC).
Volatility
Under the Biden administration the financial regulator has cracked down on crypto firms, pushing them to adhere to securities regulations.
The SEC’s current chair, Gary Gensler, said last month he would resign on the day that Trump is inaugurated, 20 January.
“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favour,” Gensler said on social media platform X.
Bitcoin and other cryptocurrencies have been highly volatile during their existence, rising to eye-watering highs before slumping again.
In April 2021 Bitcoin reached a then-all time high of $63,000 before crashing amidst a string of high-profile failures in the sector.
By a year ago Bitcoin was trading at only $37,000, before rallying in early 2024 as a result of new SEC policies allowing Bitcoin exchange-traded funds.
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