Investing.com– Bitcoin rose to a record high on Monday as investors looked to the prospect of a Strategic Reserve under incoming President Donald Trump, while MicroStrategy’s addition to the Nasdaq 100 also spurred optimism.
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.
Sentiment was also boosted by MicroStrategy Incorporated (NASDAQ:) being added to the index- a move that could draw even more capital into the world’s biggest corporate Bitcoin holder.
jumped to a record high of $106,569.4, before retreating to $103,840.0 by 08:58 ET (13:58 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, buys more Bitcoin
Sentiment towards crypto markets was also boosted by Nasdaq announcing that MicroStrategy- the world’s biggest 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.
Following the inclusion, MicroStrategy has increased its Bitcoin holdings to 439,000 BTC after completing its latest acquisition of 15,350 BTC on December 15.
The company revealed that the recent purchase cost $1.5 billion, with an average price of $100,386 per bitcoin. At current market values, MicroStrategy’s total bitcoin holdings are worth approximately $45.6 billion. The firm’s overall average purchase price stands at $61,725 per bitcoin.
The acquisition was funded through share sales under MicroStrategy’s at-the-market (ATM) program. Prior to this purchase, the company had $9.19 billion remaining under the program. After the transaction, the remaining balance is now $7.65 billion, as detailed in a recent filing.
Crypto price today: altcoins slightly lower
Broader crypto prices mostly traded in a flat-to-low range Monday, as risk sentiment remained constrained in 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 traded flat at $3,892.06, while 1.6% to $2.37.
and fell 1.6% and 2.3% respectively, while lost more than 3%.
Among meme tokens, dropped 1.6%.
Ambar Warrick contributed to this report.
