Bitcoin Hits Record High as Trump Floats Idea of Strategic Reserve, MicroStrategy Joins Nasdaq 100

The world's biggest cryptocurrency reversed a weekend rout and pushed further above the $100,000 level, after Trump once again floated the idea of a Bitcoin reserve.

Bitcoin price hit a record high on Monday, as hopes were high over a crypto reserve under incoming President Donald Trump, while the addition of MicroStrategy (NASDAQ:MSTR) to the Nasdaq 100 also boosted sentiment.

The world’s largest cryptocurrency recovered from a weekend rout and pushed further above the $100,000 level, after Trump once again floated the idea of a Bitcoin reserve.

Sentiment was also boosted by Nasdaq announcing that MicroStrategy- the world’s largest corporate holder of Bitcoin, will be added to the Nasdaq 100 index.

Bitcoin rose over 3% to a record high of $106,569.4, and traded at $104,977.1 by 00:47 ET (05:47 GMT).

On-chain data showed a flurry of transactions by major crypto holders, called whales, to move Bitcoin off major exchanges. Such a move usually limits the crypto’s supply in open markets, prompting further price gains.

Trump floats idea of Bitcoin Strategic Reserve

Trump told CNBC in an interview last week that he potentially planned to build a crypto reserve similar to the Strategic Petroleum Reserve.

The President-elect reiterated his plans to make the U.S. a global crypto leader, claiming that other countries, including China, were embracing the technology.

Trump had campaigned on promises of friendlier crypto regulations, with his picks for key cabinet and regulatory roles also harboring pro-crypto sentiments.

But analysts have questioned just how far his plans for a Bitcoin reserve will go, considering that any government purchases of the crypto will likely need to be funded by increased fiscal spending.

Such a scenario appears unlikely in a Republican-led Congress that plans to slash the U.S. fiscal deficit.

Still, the government could also turn its confiscated crypto assets into a reserve. Data from CoinGecko says the U.S. government holds over 200,000 coins, while China has about 190,000 coins.

MicroStrategy to join Nasdaq 100

Sentiment towards crypto markets was also boosted by Nasdaq announcing that MicroStrategy- the world’s largest corporate holder of Bitcoin, will be added to the Nasdaq 100 index.

The move is expected to spark even more capital flows into the Microstrategy stock, as exchange-traded funds readjust their holdings.

The stock surged over 400% this year as traders treated Microstrategy as a Bitcoin proxy play. The company has also ramped up its Bitcoin buying in recent weeks, funded largely by debt.

Crypto price today: altcoins upbeat, Fed awaited

Broader crypto prices mostly tracked gains in Bitcoin, although overall gains were limited by anticipation of a Federal Reserve meeting this week. The central bank is widely expected to cut rates by 25 basis points, but could flag a slower pace of rate cuts in 2025 on concerns over sticky inflation.

World no.2 crypto Ether rose 2% to $3,972.39, while XRP steadied at $2.4123.

Solana and Cardano rose 1.3% each, while Polygon rose 1.5%.

Among meme tokens, Dogecoin rose 1.8%.