Bitcoin Hits $106K as Trump Plans Strategic Reserve
Bitcoin on Monday reached an all-time high of more than $106K, marking a 192% increase this year as US Pres.-elect Donald Trump continues to voice positive views of cryptocurrency and future investments in that sector.
Facts
- Bitcoin on Monday reached an all-time high of more than $106K, marking a 192% increase this year as US Pres.-elect Donald Trump continues to voice positive views of cryptocurrency and future investments in that sector.[1][2]
- Trump on Thursday announced plans to establish a strategic Bitcoin reserve similar to the US Strategic Oil Reserve, aiming to position America as a global crypto leader. He's previously stated that his next administration will retain 100% of all Bitcoins his government owns or acquires.[3][4][5]
- The US government currently holds approximately 200K Bitcoins, valued at over $20B and representing nearly 1% of the total market capitalization of $20.7B. China holds 190K Bitcoins.[5]
- In addition, Trump has appointed former PayPal executive David Sacks as his cryptocurrency czar and plans to make pro-crypto attorney Paul Atkins the head of the Securities and Exchange Commission (SEC).[4]
- This comes as MicroStrategy, the world's largest corporate bitcoin holder with 425K coins worth $45B, will enter the Nasdaq 100 index starting Dec. 23. Bitcoin-related exchange-traded funds (ETFs) have raised $35B this year, with BlackRock's iShares Bitcoin Trust holding over 500K coins.[2][5]
- The total cryptocurrency market has approached $4T, with Bitcoin surging more than 50% since Trump's election on November 5. Memecoins, which are seen as some of the riskiest kinds of investments, have also surged — including market caps in the hundreds of millions.[6][7]
Sources: [1]Reuters, [2]The Blockchain News, [3]Benzinga, [4]BBC News, [5]Newsmax, [6]Independent and [7]NBC.
Narratives
- Right narrative, as provided by FOX News. Crypto should be booming. While Pres. Joe Biden's heavy-handed regulation pushed crypto developers to Europe and Asia, Trump is working toward making the US the crypto capital of the world. Between his deregulation agenda and the creation of a Bitcoin reserve stockpile, this trillion-dollar industry will support American prosperity.
- Left narrative, as provided by The Atlantic. It's unlikely this boom will help everyday Americans. Crypto enriches right-wing tech executives and influencers who use their newfound wealth to buy politicians. Trump used his proposed interest in crypto to gain votes while promoting a system where wealth and power are concentrated among those who can best manipulate its volatility.
