• Bitcoin has surged to a record high above $106,000, following President-elect Donald Trump's suggestion of creating a U.S. Bitcoin strategic reserve.
• The U.S. holds nearly 200,000 bitcoins, and Trump's statement has led to speculation about the impact on the global economy.
• Skeptics, including Federal Reserve Chair Jerome Powell, caution that implementing a Bitcoin strategic reserve will take time.
• The Bitcoin surge has been fueled by MicroStrategy's inclusion in the Nasdaq 100 index and Trump's promise to make the U.S.
• the "crypto capital of the planet.".

Bitcoin, the world's most prominent cryptocurrency, has made a historic leap, surging to a record high above $106,000. This unprecedented rise was triggered by President-elect Donald Trump's suggestion of creating a U.S. Bitcoin strategic reserve, similar to the strategic oil reserve. This news has sparked the enthusiasm of crypto enthusiasts and significantly boosted investor sentiment.

We're in blue sky territory here, said Tony Sycamore, an analyst at IG. The next figure the market will be looking for is $110,000. The pullback that a lot of people were waiting for just didn't happen, because now we've got this news. This sentiment is shared by many in the industry, who believe that the incoming Trump administration will usher in a more crypto-friendly regulatory environment, thereby boosting sentiment around the alternate currency.

The strategic reserve plans have been met with mixed reactions. When asked about his intentions, Trump confirmed, Yeah, I think so. This statement has led to speculation about the potential impact on the global economy.

Trump's Crypto Vision and Global Reactions

As of July, governments around the world held 2.2% of Bitcoin's total supply, with the United States possessing nearly 200,000 bitcoins valued at more than $20 billion at current levels. Other countries with significant amounts of bitcoins include China, the UK, Bhutan, and El Salvador.

Russian President Vladimir Putin has also weighed in on the matter, stating that the current U.S. administration was undermining the role of the U.S. dollar as the reserve currency in the global economy by using it for political purposes. This has forced many countries to turn to alternative assets, including cryptocurrencies. For example, bitcoin, who can prohibit it? No one, Putin said.

However, there are skeptics. Federal Reserve Chair Jerome Powell likened Bitcoin to gold earlier this month, and analysts have pointed out that any such move will take time to implement. I think we still need to be cautious on a BTC strategic reserve, and at least consider that this is not likely to happen anytime soon, said Chris Weston, head of research at Pepperstone.

MicroStrategy and the Crypto Market Boom

The Bitcoin surge has also been fueled by the inclusion of MicroStrategy into the tech-heavy Nasdaq 100 index, which is likely to lead to more inflows for the software firm turned Bitcoin buyer. MicroStrategy, an aggressive investor in the world's largest crypto asset, has seen its shares soar more than six-fold this year, taking its market value to almost $94 billion. It is now the largest corporate holder of the cryptocurrency.

In addition to Bitcoin, the total value of the cryptocurrency market has almost doubled over the year so far to hit a record over $3.8 trillion. Trump, who once labeled crypto a scam, embraced digital assets during his campaign, promising to make the United States the crypto capital of the planet. He has also named a White House czar for artificial intelligence and cryptocurrencies, former PayPal executive David Sacks, a close friend of Trump adviser and megadonor Elon Musk.