Bitcoin rises above $106,000 amid hopes for strategic reserves.

Bitcoin once again broke out, reaching new levels of over $106,000. This happened when trading commenced in Asia on Monday. The impulse for this was provided by presumable indications from President-elect Donald Trump that his administration would create a strategic reserve for Bitcoin just like that of oil in the US. This has left very many captivated, which ramped up buyer enthusiasm. 

Bitcoin peaked at $106,533 before a minor retracement, with the last quote at $105,688. Ether also had a positive day, climbing just short of 3% to $4,014, while that for Bitcoin. For Tony Sycamore, the market is indeed eyeing $110,000 with further increases expected. While many were expecting a price pullback, the market acted to surprise some private traders who were indeed looking for such a corrective action.

Image source: Reuters

Other countries have begun the task of preparing a federal reserve for cryptocurrency. For instance, Russian President Vladimir Putin raised concerns about the need to keep state reserves in foreign currencies. He pointed out that the current U.S. administration may be damaging the dollar’s status as the world’s leading reserve currency.

As for Federal Reserve Chair Jerome Powell, he has shown a tendency of a little caution when it comes to Bitcoin. He considers it similar to gold and clarified that Bitcoin is certainly not an accepted means of payment. Interestingly, he has emphasized its extreme volatility and also claims that as a reliable store of value, or even a true competitor to the dollar, it fails. This difference illustrates the different minds that seem to differ on the question: What will happen to cryptocurrencies in the future global financial system?

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