Bitcoin on the Rise: Trump's Strategic Crypto Reservation

Bitcoin reaches new heights as the price surpasses the $105,000 mark for the first time. This follows a statement from future US President Donald Trump, who suggested in an interview the creation of a strategic Bitcoin reserve, similar to the US strategic oil reserve. Trump's remarks about achieving "something great with crypto" to maintain the US's lead over nations like China drove prices up. The crypto market received additional momentum from MicroStrategy's inclusion in the Nasdaq 100. The software company is the world's largest corporate holder of Bitcoin and already saw a 6% rise in pre-market trading. Trump's announcement of a friendlier stance toward crypto regulation is fostering an increasing investment flow in this direction. Despite Trump's statements, it remains unclear how a Bitcoin reserve could be implemented, especially given the total limited supply of 21 million coins. Currently, governments hold about 13.9% of the total supply. The US and China are competing for leadership, with the US holding almost 200,000 coins. Already this year, Bitcoin has experienced an increase of over 190%. Support came from the introduction of US exchange-traded funds in January, tied to the spot price, which attracted about $35 billion in investments. BlackRock's iShares Bitcoin Trust sees itself as the main beneficiary and has received over 500,000 coins. Trump has promised in his campaign to retain all of the government's Bitcoin holdings. However, building up large reserves could restrict trading of the remaining coins for investors and destabilize the market in case of sales. Experts expect that the Federal Reserve or even Congress might manage potential future reserves similarly to oil. Trump is certainly determined to advance the crypto agenda, not least by appointing David Sacks and the possible nomination of Paul Atkins as head of the SEC.