Bitcoin Surges Past $106,000 After Trump Proposes Crypto Reserve

Bitcoin’s value soared to over $106,000, a record high, following President-elect Donald Trump’s proposal for a U.S. strategic cryptocurrency reserve akin to the oil reserve system.

Bitcoin, the world’s most prominent cryptocurrency, reached an all-time high of $106,533 on December 16. This surge comes on the heels of Donald Trump’s proposal to establish a national strategic reserve of Bitcoin, similar to the United States’ Strategic Petroleum Reserve, as reported by Reuters.

The cryptocurrency has seen rapid growth recently, driven by optimism that the Trump administration will adopt a more favorable regulatory approach toward digital currencies. Since Trump’s victory in the November 5 presidential election, Bitcoin has climbed by over 50%.

Over the past year, Bitcoin’s value has skyrocketed by 192%. The overall cryptocurrency market has also experienced explosive growth, nearly doubling in size to exceed $3.8 trillion.

Governments worldwide collectively hold about 2.2% of Bitcoin’s total supply, according to data from CoinGecko. The United States alone possesses approximately 200,000 Bitcoins, now valued at over $20 billion.

Other nations, including China, the United Kingdom, Bhutan, and El Salvador, also maintain significant cryptocurrency holdings. Several countries are exploring the creation of strategic reserves to bolster their economic resilience.

This development has further fueled enthusiasm in the cryptocurrency market, with many investors betting on a more crypto-friendly regulatory environment under Trump’s administration.

Bitcoin’s rise is part of a broader trend, but its price remains volatile. Just days earlier, Bitcoin briefly dipped below $100,000 after initially surpassing the milestone.