Bitcoin hits new record high above $106k on Trump and MicroStrategy news

From Investing.com

December 16, 2024 01:23:27 AM:

Bitcoin surged to a new high as investors considered a potential Strategic Reserve under President Trump and MicroStrategy’s addition to the Nasdaq 100. The cryptocurrency hit $106,569.4 before settling at $104,977.1. Major holders moved Bitcoin off exchanges to limit supply, driving up prices.

Trump discussed the idea of a Bitcoin reserve similar to the Strategic Petroleum Reserve, aiming to make the US a crypto leader. Analysts questioned the feasibility of such a plan given fiscal constraints. However, the US government holds over 200,000 coins, which could potentially be used for a reserve.

MicroStrategy’s inclusion in the Nasdaq 100 index boosted sentiment in crypto markets, with traders treating the company as a proxy for Bitcoin. The stock surged over 400% this year, fueled by increased Bitcoin purchases funded by debt. The move is expected to attract more capital into Microstrategy stock.

Altcoins followed Bitcoin’s gains, with Ethereum reaching $3,972.39 and Litecoin stabilizing at $2.4123. Ripple and Dogecoin rose 1.3% each, while Cardano and Shiba Inu increased by 1.5% and 1.8% respectively. The market awaits the Federal Reserve meeting, with expectations of a rate cut by 25 basis points.

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