Bitcoin price hits new record $106k after Trump confirms Bitcoin reserve plan

The world’s biggest cryptocurrency jumped nearly 5%, hitting $106,533 on Monday morning. This surge came after Trump spoke on Sunday about his administration’s plans to support cryptocurrencies. He said the U.S. would work to stay ahead in the crypto race and create favorable rules to boost Bitcoin and other digital currencies.

“We’re going to do something great with crypto,” Trump said in an interview with CNBC. “We don’t want China or anyone else to lead. We want to be the Bitcoin superpower.”

Trump compared the proposed Bitcoin reserve to the country’s oil reserve. He said this move would ensure the U.S. stays strong in the global economy as more countries turn to cryptocurrencies.

The idea of a Bitcoin reserve is not unique to the U.S. Recently, Russian President Vladimir Putin talked about reducing reliance on foreign currencies like the U.S. dollar. He suggested cryptocurrencies as an alternative, calling Bitcoin an asset no one can block or control.

Other countries are also exploring digital currency reserves as a way to strengthen their economies.

While many investors are excited, some experts remain cautious. Federal Reserve Chair Jerome Powell recently said Bitcoin is not widely used for payments or storing value. He called it too volatile to compete with the dollar.

Despite these doubts, Bitcoin’s price has soared over 50% since Trump’s election in November. Pro-crypto candidates joining Congress have also fueled the market’s growth.

Bitcoin’s market value has now crossed $2 trillion, while the entire cryptocurrency market is close to $4 trillion. Ethereum, the second-largest cryptocurrency, also rose, trading at $3,954.

Crypto experts predict even bigger growth ahead. Shivam Thakral, CEO of BuyUcoin, said Trump’s plans have sparked excitement. “This announcement has boosted investor confidence, pushing Bitcoin up by nearly 5.56% in just a week,” he said.

Vikram Subburaj, CEO of Giottus, added that Bitcoin could soon reach $110,000, thanks to strong demand and favorable market conditions. “Spot ETF inflows have been solid, and a U.S. interest rate cut could give it an extra push,” he said.

Trump’s support for Bitcoin is not the only reason for its rise. Companies like MicroStrategy have been heavily investing in Bitcoin. The software firm was recently added to the Nasdaq 100 index, which has further boosted investor interest.

Analysts believe that growing demand from institutions and fear of missing out (FOMO) among retail investors are driving Bitcoin’s historic surge.

Some experts even predict Bitcoin could hit $150,000 by mid-2025 as it becomes a must-have asset for many portfolios.

Trump’s plan to create a Bitcoin reserve could mark a big shift in the global financial system. As more countries and companies embrace cryptocurrencies, Bitcoin’s role as a leading digital asset seems stronger than ever.