Bitcoin Breaks $107,000 Amid Fed Rate Cut Expectations and Trump’s Crypto Reserve Plans

Bitcoin rose to a brand new all-time excessive on Monday, breaching $107,000, as buyers awaited an anticipated fee reduce from the Federal Reserve later this week. Additionally, newly elected President Donald Trump has indicated plans to create a US bitcoin strategic reserve, much like its strategic oil reserve, producing pleasure within the crypto neighborhood.

Investor sentiment was additionally boosted by the current information of MicroStrategy coming into the Nasdaq 100 index, which is able to seemingly result in extra inflows for the software program firm turned bitcoin purchaser.

The strategic reserve plans

Remarkably, Bitcoin is up 151% this 12 months. Not too long ago, in an interview with CNBC, Trump revealed plans to “do one thing nice with crypto,” whereas additionally emphasizing on main the sphere, leaving international locations like China behind.

When requested if he plans to construct a crypto reserve much like oil reserves, Trump mentioned: “Sure, I feel so.” Notably, China, Nice Britain, Bhutan and El Salvador are the opposite international locations with a big quantity of bitcoins. Different international locations have additionally thought of strategic cryptocurrency reserves.

International locations exploring alternate options

Earlier this month, Russian President Vladimir Putin had acknowledged that the US is weakening the greenback’s position as a worldwide reserve forex through the use of it for political functions, prompting many international locations to search for alternate options comparable to cryptocurrencies.

There are additionally critics, as Chris Weston, head of analysis at Pepperstone, shared: “I feel we nonetheless have to be cautious a couple of strategic reserve of BTC, and a minimum of take into account that that is unlikely to occur anytime quickly.”

Bitcoin has risen greater than 50% for the reason that November 5 election, which noticed a pro-crypto victory. The full worth of the cryptocurrency market has practically doubled to a document of greater than $3.8 trillion up to now. Trump has additionally nominated pro-crypto Paul Atkins to guide the SEC.

Bitcoin reaches a brand new milestone!

Bitcoin has reached one other large milestone in its beautiful rally within the fourth quarter of 2024, as its power asset worth has reached $100,000. Bitcoin Vitality Worth SMA jumped to nearly $100,500 at present. The tough benchmark for the chart was nearly $105,000, as demonstrated by Edwards. Charles Edwards of Capriole Investments had predicted in early March 2020 that Bitcoin Vitality Worth would attain $100,000 by 2025.

As well as, buyers count on the Fed to chop charges this week at its two-day coverage assembly, which concludes on Wednesday. The CME FedWatch Software presently predicts a 96% likelihood of a 25 foundation level reduce. That may most likely be bullish for the Bitcoin worth. Bitcoin is presently buying and selling at $107,095, up over 3% within the final 24 hours.