Bitcoin Surges Past $107K Amid Trump Crypto Reserve Plans and Fed Rate Cut Hopes

Bitcoin hits a record $107,000 as Fed rate cut expectations rise and Trump teases a U.S. Bitcoin strategic reserve. The rally is fueled by MicroStrategy Nasdaq 100 inclusion and strong investor sentiment.

Bitcoin Breaks Records on Multiple Bullish Catalysts

Bitcoin (BTC) soared to a new all-time high of $107,000 on Monday, driven by rising expectations of a Federal Reserve interest rate cut and bold crypto plans from President-elect Donald Trump.

Trump Eyes Strategic Bitcoin Reserve

Investor excitement surged as Trump, in a recent CNBC interview, indicated plans to create a U.S. Bitcoin Strategic Reserve similar to the country’s oil reserves. Trump highlighted a vision for America to lead the crypto space, outpacing competitors like China and El Salvador.

Trump’s statement, “Yeah, I think so,” when asked about the reserve, sent ripples through the crypto market, marking a pivotal shift in U.S. policy sentiment toward cryptocurrencies. Countries like China, the UK, Bhutan, and El Salvador already hold significant Bitcoin reserves, setting a precedent for sovereign crypto adoption.

Russian President Vladimir Putin further fueled the narrative by criticizing the U.S. for politicizing the dollar, encouraging global interest in alternatives like cryptocurrencies.

However, analysts like Chris Weston of Pepperstone advised caution, noting that a U.S. Bitcoin reserve would take time to materialize.

MicroStrategy and Fed Policy Fuel Sentiment

Another catalyst came from MicroStrategy, the software giant turned leading Bitcoin investor, which secured inclusion in the Nasdaq 100 index. This milestone is expected to attract significant institutional inflows, strengthening Bitcoin’s appeal as a mainstream investment.

Investor sentiment also anticipates the Federal Reserve’s two-day policy meeting, concluding Wednesday. With the CME FedWatch Tool indicating a 96% chance of a 25-basis-point rate cut, traders expect further Bitcoin gains. Lower interest rates typically drive investors toward non-yielding assets like BTC, further bolstering its price.

Bitcoin Energy Value Milestone

Bitcoin’s Energy Value metric, a key valuation model tracked by Capriole Investments, reached a significant milestone, hitting $100,000. Analyst Charles Edwards had predicted this figure in 2020, marking a strong alignment with Bitcoin’s actual price surge to $107,095.

Bitcoin’s year-to-date gains now exceed 151%, with the total cryptocurrency market cap doubling to over $3.8 trillion.

Conclusion

Bitcoin’s latest all-time high reflects a convergence of favorable economic policy, political developments, and strong technical metrics. With Trump’s crypto reserve vision, MicroStrategy’s institutional milestone, and Fed policy shifts, the bull run could extend further.

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