Bitcoin Rallies as Trump Reaffirms Support for Strategic Reserve, GSR's Rudick Says

Brian Rudick, head of research at crypto market maker GSR, told Fortune that the surge was triggered partly by President-elect Donald Trump's reaffirmation of his support for a strategic Bitcoin reserve in an interview with CNBC late last week.

Bitcoin price surged another 5% on Monday morning to hit a new all-time high of $68,000.

The latest leg up was triggered by comments from President-elect Donald Trump, who appeared to double down on his support for a strategic Bitcoin reserve in an interview with CNBC late last week.

When asked by the network’s Becky Quick whether he plans to establish a federal reserve for the cryptocurrency, akin to that of oil reserves, Trump replied, “Yes, I think so.”

“We’re gonna do something great with crypto because we don't want China or anybody else, not just China but others are embracing it, and we want to be the head,” he added.

During his campaign for the presidency, Trump had promised to create a national Bitcoin reserve, an effort spearheaded by Wyoming Sen. Cynthia Lummis, in a bid to court the crypto vote.

In July, Lummis introduced the Bitcoin Act, which would establish the reserve, explaining on her website that it “will serve as an additional store of value to bolster America’s balance sheet.”

According to GSR head of research Brian Rudick, Trump’s comments, together with a meeting between Lummis and Trump’s Treasury pick Scott Bessent, are fueling optimism among investors about Bitcoin’s future as a legitimate store of value.

While it remains to be seen whether Lummis’ bill will pass anytime soon, Rudick noted that Trump could sign an executive order to prohibit the government from selling off its current Bitcoin holdings—which amount to over 200,000 BTC that were seized from individuals who engaged in illicit activities—thereby adding further legitimacy to the cryptocurrency as a reserve asset.

“If it seems like the U.S. would go down this route… it could actually create this nation-state level war for Bitcoin,” said Rudick, suggesting that an array of other countries could start adopting Bitcoin reserves and buying the cryptocurrency in bulk. “At that point the sky is the limit in terms of where the price could go.”

Of course, countries that either buy or hold Bitcoin also run the risk of the cryptocurrency losing value. El Salvador, the first country to make Bitcoin legal tender, lost $60 million on its Bitcoin bet in 2022. However, since then, the value of the cryptocurrency has rebounded, and El Salvador’s holdings are now valued at over $600 million.

Last month, Trump’s election victory sent Bitcoin on a tear that has continued for weeks as investors anticipate the appointment of pro-crypto officials and changes to regulations that are designed to support the growth of the crypto industry.

The cryptocurrency is now up over 150% this year after Trump fully embraced the crypto industry over the summer.