Bitcoin soared to a new record, briefly breaching the $106,000 (£83,700) mark, after President-elect Donald Trump hinted that his incoming administration may create a “treasury” for the cryptocurrency, similar to the United States’ temporary state of emergency. long. a lot of fat.
Speaking to CNBC, Mr Trump suggested that the US could accumulate a Bitcoin depository following its opening in January. The comments bolstered hopes that his administration will take a significantly more friendly stance toward the digital asset industry, potentially strengthening America’s position at the forefront of the global crypto market.
“We’re going to do something great with crypto,” the president-elect said. “We don’t want China or anyone else to come before us. Yes, I think we will consider creating a crypto reserve. “
His comments caused a strong rally in cryptocurrency markets. Bitcoin surged to $106,533 on Monday, extending its year-to-date gains to more than 190pc and sending other leading digital tokens, including Ethereum, more sensitive.
Despite previous deregulation and Mr. Trump’s own criticism in the past—he once called the cryptocurrency a “scam”—the US already holds the world’s largest Bitcoin trove, mostly in confiscated assets. It currently controls about 198,000 coins worth about $20bn. Other important government holders include China, the UK, Bhutan, and El Salvador, according to data from BitcoinTreasuries.
CoinGecko data shows that governments collectively held about 2.2pc of the total Bitcoin volume as of July. Advocates argue that any US legal acceptance of digital assets will accelerate the global evolution in crypto use, especially if the strategy of restraint encourages private businesses and funds to follow suit.
Mr. Vladimir Putin, the president of Russia, has previously commented that Bitcoin could provide countries wary of Washington’s ability to use its dollar power as a foreign policy base. “Who can forbid you? There is none,” Mr Putin said, emphasizing Bitcoin’s decentralized structure, which relies on a global network of independent “miners” rather than central banks.
This natural isolation, combined with limited availability, often prompts comparisons to gold. Federal Reserve Chairman Jerome Powell and other policymakers have acknowledged Bitcoin’s resemblance to a form of “digital gold” rather than a traditional currency.
Market analysts described the recent price surge as pushing Bitcoin into “blue sky territory”. Tony Sycamore, an analyst at IG, told Reuters: “We are in uncharted waters. The next figure the market will want is $110,000. The backlash that many expected did not happen, and now we have these new signs of support from Trump. “
Investors were also encouraged by the promotion of MicroStrategy – a US-listed firm that manages large Bitcoin funds – the elite index of the Nasdaq 100. This move will force tracker funds to add shares of the company, effectively embedding crypto exposure deeply in investment portfolios of common funds.
During his campaign, Mr Trump vowed to turn the United States into the “crypto capital of the planet”. This month he appointed David Sacks, a former PayPal executive, as the White House leader on artificial intelligence and digital goods. Mr Sacks is closely connected with Elon Musk, another prominent adviser and supporter of cryptocurrencies, who he called the president’s “first friend”.
Mr Trump also said he would appoint Paul Atkins, a Washington lawyer known for his stance on crypto, to head the Securities and Exchange Commission, America’s top financial watchdog. In doing so, Mr Trump appears set to deliver on his promises of a regulatory environment friendly to digital innovation, setting the stage for a new era of crypto investment and potentially pushing Bitcoin even deeper into finance.