Bitcoin hits another all-time high - what's behind the crypto rally?
Bitcoin's price hit $107,487 (€102,429.74), a new all-time high on Monday, according to Marketwatch. The queen of cryptocurrencies has gained more than 50% since Donald Trump won the presidential election last month, its price is up roughly 150% year to date.
Bitcoin's price has been surging to new records fuelled by ongoing speculation that the US may see a Bitcoin Strategic Reserve under President Trump after the US Treasury named bitcoin digital gold. The strategic reserve would potentially mean that the US stockpiled a large amount of this digital currency in the future.
According to CoinDesk, the US is not the only one considering creating a strategic Bitcoin reserve. Russian lawmakers are eyeing the feasibility of creating a strategic bitcoin reserve, partially to counter the threat of sanctions.
The price of the flagship cryptocurrency has also been pushed higher by the news that Bitcoin buyer software company MicroStrategy was selected to join the tech-heavy Nasdaq 100 index, giving the index indirect exposure to Bitcoin via this company which holds more than 2% of Bitcoin's global supply, worth around $42bn (€40bn).
"Bitcoin gained about 3% over the past day, slightly outperforming the broader market," said Alex Kuptsikevich, theFxPro chief market analyst. "The move into all-time high territory, including the push above $106K, confirms the bullish bias." The analyst expects Bitcoin's price to soar even faster from now on unless "unexpected news from the traditional financial markets doesn't stop this rally".
Others believe that the mainstream adoption may affect the price in the new year. "The increasing mainstream adoption of Bitcoin is another interesting narrative that we expect in the new year," said Chris
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