The price of Bitcoin has reached a historic high after U.S. President-elect Donald Trump confirmed plans to establish a Bitcoin Federal Reserve. Following his comments, Bitcoin surged nearly 5%, hitting a record-breaking value of over $106,000 on Monday morning.
Trump first floated the idea of a Bitcoin Federal Reserve during the Bitcoin 2024 Conference in July, outlining his vision of making the United States the leading force in the cryptocurrency space. He recently expanded on this vision in an interview with CNBC, emphasizing his administration’s commitment to revamping regulations and introducing policies that will enable the crypto market to thrive. Trump described the global competition in the digital asset space as a race the U.S. must win, stating, “Others are moving forward, and we have no choice but to take the lead.”
As part of his strategy, Trump proposed creating a Bitcoin reserve modeled after the country’s strategic oil reserves. This idea aligns with a broader trend, as other nations, including Russia, are also exploring the potential of cryptocurrency reserves. Earlier this month, Russian President Vladimir Putin questioned the reliance on foreign currencies for state reserves and suggested that cryptocurrencies offer an attractive alternative. Putin criticized the U.S. government for undermining the dollar’s global dominance by using it as a political tool, adding, “Assets like Bitcoin are beyond prohibitions—no one can control them.”
Despite the enthusiasm surrounding Bitcoin, some skeptics remain unconvinced of its utility. Federal Reserve Chair Jerome Powell, for example, recently likened Bitcoin to gold, suggesting it has limited practical use in everyday transactions. “It’s not widely adopted as a payment method or a reliable store of value due to its volatility,” he commented.
Still, Bitcoin’s recent performance tells a different story. Since Trump’s election victory on November 5, Bitcoin has risen by more than 50%, driven by growing confidence in the digital asset market. Its market capitalization now exceeds $2 trillion, while the overall cryptocurrency market is approaching $4 trillion. This dramatic growth reflects a shift in investor sentiment, with digital assets increasingly seen as valuable portfolio additions.
Experts in the financial industry remain optimistic about Bitcoin’s trajectory. Nigel Green, CEO of the financial advisory firm deVere Group, recently highlighted the factors driving this upward momentum. According to Green, the current market conditions signal that Bitcoin’s price could rise significantly in the coming months. “The environment is primed for new record highs,” he noted, pointing to a surge in institutional investment and the fear among retail investors of being left behind. He projected that Bitcoin could reach $150,000 by mid-2025 as this dual momentum accelerates.
As the cryptocurrency market gains strength, Bitcoin is solidifying its position as a cornerstone of modern investment strategies. While skepticism remains, the digital asset’s impact on the global financial landscape is undeniable, and the United States seems poised to play a pivotal role in shaping its future.