Bitcoin price reaches new record high following announcement of BTC federal reserve plan
Bitcoin has hit an all-time high, soaring above $106,000 after US President-elect Donald Trump confirmed plans for a BTC federal reserve. Trump made the announcement during the Bitcoin 2024 conference in July, with the goal of establishing the US as a “bitcoin superpower.”
Following Trump’s comments, the price of bitcoin surged nearly 5 percent, reaching a record high on Monday morning. Speaking to CNBC, Trump emphasized his administration’s focus on revamping regulations and implementing policies to support cryptocurrency, stating, “We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead.”
Notably, other countries are also exploring cryptocurrency reserves. Russian President Vladimir Putin recently questioned the necessity of holding foreign currency reserves, favoring domestic investments. In a nod to bitcoin, Putin highlighted its appeal as a currency that cannot be prohibited by any authority.
Despite the positive outlook on bitcoin, Federal Reserve Chair Jerome Powell expressed skepticism, likening bitcoin to gold and noting its volatility. Powell highlighted that many individuals are not utilizing bitcoin for transactions or as a stable asset, citing its limitations compared to the US dollar.
Since the election, which saw the victory of Trump and other pro-crypto candidates, bitcoin has surged over 50 percent. This surge has propelled bitcoin’s market capitalization beyond $2 trillion, with the overall cryptocurrency market approaching $4 trillion.
Predictions by Nigel Green, CEO of deVere Group, suggest that bitcoin’s price could reach $150,000 by mid-2025 due to increasing investor interest and institutional investment. Green emphasized that bitcoin is becoming an essential asset in investment portfolios, driven by the fear of missing out (FOMO) and rising institutional support.
With the crypto market on an upward trajectory, many anticipate even higher price highs in the coming months. Stay tuned for more updates as the crypto landscape continues to evolve.
