Key Points
- Bitcoin’s value has exceeded the $100,000 mark for the first time, drawing attention from global investors.
- President-elect Donald Trump has congratulated Bitcoin holders and reassured his commitment to the cryptocurrency industry.
Bitcoin’s price has garnered worldwide investor interest after it broke the $100,000 milestone for the first time. The leading cryptocurrency rose over 8 percent in a single day, trading at approximately $103,541 on the morning of December 5.
The surge in Bitcoin’s demand is evident in the recent spike in total futures open interest (OI), which exceeded $66 billion for the first time. Institutional investors, led by MicroStrategy Inc., have continued to accumulate more Bitcoin. Additionally, BlackRock’s IBIT has been making significant daily Bitcoin purchases.
Trump’s Support for the Crypto Industry
As Bitcoin holders celebrate the recent rally beyond $100k, US President-elect Donald Trump conveyed his congratulations via the Truth Social platform. Trump reaffirmed his commitment to collaborate with the cryptocurrency industry to make the country great again.
Trump’s post garnered attention from the crypto community, as the country gears up to lead in the establishment of a strategic Bitcoin reserve. According to Michael Saylor, the founder of MicroStrategy, the United States will significantly benefit from a Bitcoin-friendly president in the coming years.
Dennis Porter, through the Satoshi Action Fund, is collaborating with 11 states in the United States to legislate a strategic Bitcoin reserve. Moreover, Trump plans to create a Bitcoin stockpile, starting with the 188k BTC seized from the Silk Road marketplace.
The Bigger Picture
Adoption of Bitcoin as a hedge against inflation and fiat devaluation is predicted to increase significantly as more nations aim to implement a strategic BTC reserve. Furthermore, Fed Chair Jerome Powell stated that Bitcoin is a digital gold and does not compete with the United States.
As a result, Bitcoin’s market cap is expected to rise exponentially over the years, surpassing major tech companies and eventually gold. The entire cryptocurrency industry will rise along with Bitcoin as more investors diversify into potentially lucrative altcoins.
At the time of writing, the total crypto market cap, hovering around $3.89 trillion, had exceeded Apple Inc., which has a market cap of about $3.67 trillion.
