Bitcoin has reached a remarkable new milestone, soaring to an all-time high of over $107,000. This surge comes as investors keenly anticipate a potential interest rate cut from the Federal Reserve later this week. In a bold move, President-elect Donald Trump has proposed creating a U.S. Bitcoin strategic reserve akin to the country’s strategic oil reserve, stirring excitement within the cryptocurrency community.
The Strategic Reserve Plans
This year, Bitcoin has experienced an incredible 151% growth. In a recent interview with CNBC, Trump expressed his vision of ‘doing something great with crypto,’ emphasizing the importance of leading the sector and surpassing nations like China. When questioned about establishing a crypto reserve similar to the oil reserves, Trump confirmed, “Yeah, I think so.” Several countries, including China, the UK, Bhutan, and El Salvador, have already accumulated significant Bitcoin reserves, while others are contemplating similar strategies.
Countries Exploring Alternatives
Earlier this month, Russian President Vladimir Putin criticized the U.S. for undermining the dollar’s role as a global reserve currency by leveraging it for political motives. This has prompted numerous countries to consider alternatives such as cryptocurrencies. However, not everyone is convinced. Chris Weston, head of research at Pepperstone, cautioned, “I think we still need to be cautious on a BTC strategic reserve and at least consider that this is not likely to happen anytime soon.” Since the pro-crypto victory in the November 5 election, Bitcoin has surged more than 50%, contributing to the cryptocurrency market’s overall value reaching a record $3.8 trillion. Trump has also nominated the pro-crypto Paul Atkins to lead the SEC, further bolstering investor confidence.
Bitcoin Hits Another Milestone!
Entering the final quarter of 2024, Bitcoin has achieved another significant milestone as its Energy Value metric has reached $100,000. The Bitcoin Energy Value SMA has surged to nearly $100,500, with the raw metric approaching $105,000, according to Charles Edwards of Capriole Investments. Edwards had previously predicted in March 2020 that Bitcoin’s Energy Value would hit $100,000 by 2025.
Investors are eagerly watching the Federal Reserve’s upcoming two-day policy meeting, concluding on Wednesday, as they anticipate an interest rate reduction. The CME FedWatch Tool predicts a 96% likelihood of a 25-basis-point cut, which could have a bullish impact on Bitcoin’s price. Currently trading at $107,095, Bitcoin has seen a 3% increase over the past 24 hours.
