The crypto giant Bitcoin surged to an all-time high of $106,533 on Monday trading, driven by President-elect Donald Trump‘s plan to create a US Bitcoin strategic reserve.
It will be the first official endorsement of the currency by a major economy, a move that has electrified markets and fueled investor optimism.
Trump’s proposal is a departure from his previous stance on cryptocurrency until his romance with tech billionaire Elon Musk began a few years ago.
Previously, Trump labelled crypto a scam, but now he’s embracing digital assets, promising to make the United States the “crypto capital of the planet.”
“We’re going to do something great with crypto,” he said, referring to his plan to establish a strategic bitcoin reserve similar to the nation’s oil stockpile.
The inclusion of MicroStrategy, the largest corporate bitcoin holder, in the Nasdaq 100 index underscores growing institutional acceptance of digital assets. MicroStrategy’s shares have soared over 500% this year, reflecting growing confidence in Bitcoin’s potential.
Russian President Vladimir Putin recently discussed Bitcoin’s resistance to prohibition, noting how US dollar policies drive nations toward alternative assets. “For example, who can prohibit Bitcoin? No one,” Putin recently said.
Analysts forecast continued growth in the crypto giant. VanEck, a major financial analyst, predicts Bitcoin will reach $180,000 in 2025. Other notable predictions are even more outlandish, including Tim Draper’s forecast of $250,000, Standard Chartered’s target of $200,000, Tom Lee’s prediction of $250,000, and Arthur Hayes’ estimate of $175,000.
Bitcoin’s market value has surpassed $2 trillion, with Ethereum testing the $4,000 level. The Fear & Greed Index signals “extreme greed” among investors. Technical indicators suggest bitcoin’s upward momentum will continue, with support levels at $104,100, $100,000, and $90,800.
As bitcoin continues its meteoric rise, experts predict new all-time highs in 2025. However, some anticipate a correction before the market consolidates. VanEck forecasts a 30% retracement in Bitcoin’s value after reaching $180,000.
Trump’s pro-crypto stance, including the appointment of David Sacks as White House cryptocurrency czar and the nomination of Paul Atkins to lead the SEC, has fueled investor optimism.
However, some experts caution that regulatory clarity is still needed for Bitcoin’s growth path to be sustainable.
However, the convergence of these factors has conspired to propel Bitcoin to unprecedented heights, leaving investors and analysts eager to see what’s next for the cryptocurrency market.
Bitcoin’s future remains uncertain, but one thing is clear: its impact on the global financial sector is vast, yet the risks endure. A right bold investment can catapult one to unimaginable wealth, and a wrong move could wipe out a stupendously wealthy person to impoverishment.
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