Bitcoin, the world’s biggest and best know cryptocurrency, tasted another historic feat, surpassing $106,000 for the first time on Monday. Like the recent rally, US President-elect Donald Trump is to be responsible for the spike.
Bitcoin hit a high of $106,533 and last traded up 3.2 per cent to $104,462. The spike also helped to boost sentiment in the wider crypto market.
Reasons for bitcoin hitting a new record
1 – Bitcoin strategic reserve in US
Bitcoin surged on Monday when Trump said, “Yes, I think so,” when he was asked whether the US will create a bitcoin strategic reserve similar to its strategic oil reserve.
Trump’s response stoked enthusiasm among crypto bulls.
2 – Trump vows to do something great with crypto
In an interview with CNBC, Trump said: “We’re gonna do something great with crypto because we don’t want China or anybody else – not just China but others are embracing it – and we want to be the head.”
In July, when Trump was a Republican presidential candidate, he had promised to create a “strategic national bitcoin reserve” and predicted bitcoin could eclipse gold’s $16 trillion market capitalisation during an appearance at the Bitcoin 2024 conference.
3 – MicroStrategy’s inclusion into Nasdaq
Investor sentiment also got a lift from the inclusion of MicroStrategy into the tech-heavy Nasdaq 100 index on Friday. This is expected to lead to more inflows for the software firm turned bitcoin buyer.
Content retrieved from: https://www.firstpost.com/business/bitcoin-sailing-high-in-blue-sky-territory-goes-past-106000-5-factors-powering-cryptos-flight-13844821.html.
