Bitcoin’s All-Time High: Trump’s Federal Reserve Proposal Drives Cryptocurrency Surge

Bitcoin’s All-Time High: Trump’s Federal Reserve Proposal Drives Cryptocurrency Surge

The price of Bitcoin has soared to a record high, exceeding $106,000 (£84,000) on Monday morning. This surge follows President-elect Donald Trump’s confirmation of his plan to establish a Bitcoin (BTC) federal reserve.

Trump’s Bitcoin Ambitions

During his campaign, Trump proposed the creation of a Bitcoin federal reserve, pledging to make the United States the “Bitcoin superpower” of the world. Speaking to CNBC on Sunday, he reiterated his commitment to overhauling regulations and implementing policies favorable to cryptocurrency growth.

Strategic Reserves on the Rise

Trump’s proposal aligns with a growing trend among nations considering cryptocurrency strategic reserves. Russian President Vladimir Putin recently questioned the necessity of holding foreign currency reserves, advocating for domestic investment in assets like Bitcoin. Putin emphasized that decentralized currencies cannot be prohibited, suggesting their potential as alternative reserve assets.

Skeptical Voices

However, not everyone shares Trump’s enthusiasm. Federal Reserve Chair Jerome Powell has compared Bitcoin to gold, stating that it lacks the stability to rival the US dollar as a form of payment or store of value. Powell’s skepticism reflects concerns about Bitcoin’s volatility.

Post-Election Rally

Bitcoin’s record-breaking rally follows Trump’s election victory and the rise of other pro-cryptocurrency candidates. Since November 5, Bitcoin’s price has climbed by over 50%. Its market capitalization has surpassed $2 trillion, contributing to the overall cryptocurrency market’s valuation approaching $4 trillion.

Bullish Predictions

Financial experts anticipate further growth for Bitcoin. Nigel Green, CEO of deVere Group, predicts a surge to $120,000 following Trump’s inauguration. He believes that fear of missing out (FOMO) and institutional investment will drive the price to $150,000 by mid-2025. Green emphasizes that these factors are fueling the resurgence of the cryptocurrency market and solidifying Bitcoin as an indispensable asset.