Bitcoin hit a new record on Monday, topping $106,000 for the first time after pro-crypto comments from US President-elect Donald Trump.
The cryptocurrency reached $106,195 in the early morning hours, before losing some of its gains.
On Monday afternoon the tit was back higher, reaching a new high of $106,320.90 or £83,972.80.
The spike came after Trump told CNBC that he could create a US strategic bitcoin reserve.
He said: ‘We will do something big with crypto because we don’t need China and others – not only China but others are embracing it – and we want to be the head.’
Trump’s plan could mimic the US Strategic Petroleum Reserve in the form of bitcoin. The number of tokens is 21 million, and 19.9 million have been.
However, due to the limited supply of coins, the US reserve of Bitcoin can be more difficult investors to trade.
On the rise: After Trump’s election in November, Bitcoin has surged as investors hope for deregulation
Data from BitcoinTreasuries shows that 13.9 percent of all Bitcoins are now held by governments.
The US and China hold the most money, and the US has some $ 20.7 billion, just under 200,000 coins, while China has 190,000 tokens.
Trumps words came alongside the same software company’s comments MicroStrategy is set in line with the Nasdaq 100 index, which has also helped push bitcoin’s value.
MicroStrategy owns some 425,000 bitcoins, which is currently worth about $45 billion, making it the largest crypto investor and owner of 2 percent of the token’s total market value.
Simon Peters, Etoro Market Researcher, said: ‘With MicroStrategy’s inclusion in the Nasdaq 100 index, this could lead to a significant sell-off in the stock as the free investment results follow. the Nasdaq 100 index needs to be adjusted to include it now.’
Bitcoin, the most popular cryptocurrency, has seen a rapid increase in value since Trump’s election, and is set to increase by 190 percent by 2024.
The $100,000 defense was hit a week ago after the incoming president announced he would nominate Paul Atkins to replace former Securities and Exchange Commission commissioner Gary Gensler.
Crypto as a whole has risen in recent weeks, boosted by the ‘Trump trade’, as investors look to deregulation of crypto under the new president.
The current SEC commissioner Gensler is widely mocked by crypto-investors due to his negative opinion of crypto and his approach to currencies.
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