Bitcoin has reached a historic milestone, soaring past $106,000 following remarks by U.S. President-elect Donald Trump about establishing a U.S. Bitcoin Strategic Reserve. This unprecedented proposal, akin to the country’s Strategic Petroleum Reserve, has energized cryptocurrency markets, pushing Bitcoin to an all-time high of $106,533 before settling at $104,462. Ethereum also saw gains, climbing 1.5% to $3,965.
The bullish sentiment surrounding Bitcoin stems from rising expectations that the Trump administration will adopt a crypto-friendly regulatory approach. The price just crossed the elusive $100,000 mark some days ago.
During a CNBC interview, Trump hinted at the government’s ambition to dominate the crypto space, stating, “We’re going to do something great with crypto because we don’t want China or anyone else to lead. We want to be the head.” He further confirmed the possibility of creating a Bitcoin reserve, amplifying investor optimism.
The concept of national cryptocurrency reserves is not new but has gained traction recently. Currently, governments globally hold 2.2% of Bitcoin’s total supply, with the U.S. owning nearly 200,000 Bitcoins valued at over $20 billion. Other notable holders include China, the UK, Bhutan, and El Salvador.
Russian President Vladimir Putin also underscored the shift toward alternative assets, including Bitcoin, as nations seek to reduce reliance on the U.S. dollar. “No one can prohibit Bitcoin,” Putin emphasized, highlighting its decentralized nature.
Bitcoin’s surge reflects broader investor confidence, with the cryptocurrency market’s total value more than doubling this year to a record $3.8 trillion. Key developments, such as the inclusion of MicroStrategy—a major Bitcoin holder—into the Nasdaq 100 index, have further strengthened market momentum.
This is particularly noteworthy for Nigeria, where regulators continue to deliberate the merits and risks of cryptocurrency as a store of value. To stay competitive in the global crypto landscape, Nigeria should proactively establish a clear regulatory framework to foster innovation while ensuring security and compliance, positioning itself as a hub for blockchain technology.
