Bitcoin reached a new record high on Monday, surpassing $106,000 during trading. Bitcoin, the largest cryptocurrency in the world, reached a peak of $106,533 during Monday’s session. Ether, another cryptocurrency, saw a 1.2% increase, reaching a value of $3,952. Notably, Bitcoin has seen a massive 192% increase in value so far this year.
Bitcoin Surges Past $106,000: What’s Driving The Rally?
This surge is largely driven by President-elect Donald Trump’s suggestion to establish a U.S. Bitcoin strategic reserve, similar to the country’s oil reserve. This announcement sparked the excitement among the crypto enthusiasts.
Cryptocurrencies are getting a lot of attention because investors think the new Trump administration in the U.S. will create rules that are more favorable to crypto. Notably, Trump, previously called cryptocurrency a scam, and latter made a U-turn by embracing digital assets during his campaign. He vowed to transform the United States into the “crypto capital of the planet”.
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As of July, governments globally held approximately 2.2% of the total bitcoin supply, according to data from CoinGecko. The United States holds a significant share of bitcoins, with approximately 200,000 coins valued at over $20 billion at current market prices. According to BitcoinTreasuries, China, the United Kingdom, Bhutan, and El Salvador follows the United States as countries holding substantial amounts of bitcoin.
It is worth noting that the Bitcoin works without a central bank or authority. This relies on a network of computers to manage transactions and create new units. This decentralized system allows for peer-to-peer transactions without the need for intermediaries. Furthermore, Bitcoin is an open system, meaning anyone can see how it works and participate. However, few major economies have taken a cautious approach regarding the use of cryptocurrencies because of the downside risks involve.
(Disclaimer: This article is for informational purposes only and should not be construed as an investment advice. Prior to making an investment, conduct thorough research and consult with your financial advisor.)
