New Record in Bitcoin: Trump's Strategic Reserve Plan Makes an Impact
Bitcoin surged past $106,000, reaching a new historical high as the new week began, following the announcement of a strategic reserve plan for Bitcoin by Donald Trump, the elected President of the United States.
In a statement at the New York Stock Exchange, Donald Trump announced that the U.S. will create a Bitcoin reserve to maintain its lead over global competitors. This announcement heightened investor excitement, generating positive momentum in the market and driving Bitcoin to a new record level of $106,568.
The Bitcoin Bill introduced by U.S. Republican Senator Cynthia Lummis also played a role in this increase. The bill presents a plan for the U.S. to purchase 1 million BTC over the next five years. Other countries, including Russia, are also considering establishing their own Bitcoin strategic reserves. Russian Finance Minister Anton Tkachev stated that creating a Bitcoin reserve could be beneficial in addressing the sanctions imposed on the country.
Impact of market surge and expectations
MicroStrategy (MSTR), one of the leading companies making significant investments in Bitcoin, announced this week that it has purchased an additional 21,550 BTC, bringing its total to 423,650 BTC. MicroStrategy's shares have also attracted attention as they were included in the Nasdaq 100 index. This move by the company excited investors, increasing market activity.
This movement in the cryptocurrency market gained strong momentum when combined with investor fear of missing out (FOMO). Net inflows into Bitcoin ETFs exceeded $50 billion over the past year, bringing substantial confidence to the markets. Amid this environment, Bitcoin's value has increased by 192% since the beginning of the year, while the total market value of cryptocurrencies reached up to $3.8 trillion.
Current status in the altcoin market
Additionally, other major cryptocurrencies such as Ethereum continued their upward trend, with the largest altcoin testing the $4,000 level again during the early hours of the day. Altcoins like Solana, Dogecoin, and Cardano also gained value by up to 7%. This market increase is supported by the growing interest of countries in cryptocurrencies and expectations of a more favorable regulatory environment.
In the U.S., the Trump administration intends to take a more open approach to cryptocurrencies and aims to establish the country as a crypto hub. Recently, President Trump appointed former PayPal (PYPL) executive David Sacks as the head of the White House responsible for artificial intelligence and cryptocurrencies.
Trump also mentioned plans to nominate crypto-friendly figure Paul Atkins for the position of Chairman of the U.S. Securities and Exchange Commission (SEC). Such appointments are regarded as significant signals for the future of the cryptocurrency market.