Bitcoin Breaks $107,000 Amid Fed Rate Cut Expectations and Trump’s Crypto Reserve Plans
Bitcoin rose to a new all-time high on Monday, topping $107,000, as investors awaited an expected interest rate cut by the Federal Reserve later this week. Additionally, President-elect Donald Trump sparked enthusiasm in the cryptocurrency community by stating plans to establish a U.S. strategic reserve of Bitcoin similar to the Strategic Petroleum Reserve.
The recent news of MicroStrategy entering the Nasdaq 100 index has also boosted investor sentiment, which could lead to the software company turning into a Bitcoin buyer, leading to more inflows.
Strategic Reserve Plan
Notably, Bitcoin is up 151% this year. Just recently, Trump revealed plans to “do great things with cryptocurrency” in an interview with CNBC, while also emphasizing his desire to lead the field and leave countries like China behind.
Asked if he planned to create a cryptocurrency reserve similar to an oil reserve, Trump said: “Yeah, I think so.” Notably, China, the United Kingdom, Bhutan, and El Salvador are other countries with significant Bitcoin holdings. Other countries have also been considering cryptocurrency strategic reserves.
Countries exploring alternatives
Earlier this month, Russian President Vladimir Putin said the United States was using the dollar for political purposes, thereby undermining the greenback’s role as a global reserve currency, leading many countries to seek alternatives such as cryptocurrencies.
There are critics, too, as Pepperstone head of research Chris Weston shared, “I think we still need to be cautious about BTC strategic reserves, at least given that this is unlikely to happen anytime soon.”
Bitcoin has surged more than 50% since the Nov. 5 election in favor of the cryptocurrency. The total value of the cryptocurrency market has nearly doubled in a year to date, reaching a record of more than $3.8 trillion. Trump also nominated crypto-supporter Paul Atkins to serve as SEC chairman.
Bitcoin reaches another milestone!
Bitcoin has reached another huge milestone during its brilliant rally in Q4 2024, with its energy value indicator reaching $100,000. The Bitcoin Energy Value SMA jumped to nearly $100,500 today. The chart’s original indicator almost reached $105,000 as proved Edwards. Charles Edwards of Capriole Investments predicted as early as early March 2020 that the value of Bitcoin energy would reach $100,000 by 2025.
Additionally, investors expect the Federal Reserve to cut interest rates this week at its two-day policy meeting, which ends on Wednesday. The CME FedWatch tool currently predicts a 96% chance of a 25 basis point rate cut. This could be positive for Bitcoin prices. Bitcoin is currently trading at $107,095, up more than 3% in the past 24 hours.
