KEY POINTS
- Bitcoin traded at $106,352 at one point Sunday night on CoinGecko
- A Texas lawmaker introduced a bill to establish a state strategic $BTC reserve
- An industry expert expects more institutional action, potentially fueled by high-profile endorsements
Bitcoin passed $106,000 for the first time Sunday night amid high hopes for the U.S. to adopt a national strategic Bitcoin reserve and a festive atmosphere within the cryptocurrency community.
BTC prices climbed Sunday to reach a new all-time high at $106,352, as per CoinGecko data. The world's largest crypto asset gained over 5% in the past week and has been up by 2.7% in the last 24 hours.
Why is $BTC On a Moon Trip?
Bitcoin's surge to a new ATH comes as the crypto community anticipates that the U.S. government under President-elect Donald Trump will establish a national strategic Bitcoin reserve.
Hopes especially climbed in the past week after Texas, a known pro-crypto state, became the second state in the country to introduce a state Bitcoin reserve.
Pennsylvania was the first U.S. state to introduce such a plan, but much attention went to Texas after its announcement due to the provisions of the proposed act that includes a mandate for the state to "hold" its BTC reserves for at least five years before doing anything to the funds.
The news renewed hopes for Trump to uphold his campaign promise regarding making the United States the world's leader in crypto.
Nayib Bukele Flaunts El Salvador's Bitcoin Treasury
El Salvador's President was quick to celebrate Bitcoin's new all-time high, posting on X an update on how the country's BTC reserve is performing amid the digital currency's surge.
— Nayib Bukele (@nayibbukele) December 16, 2024
Data from the country's website for public tracking shows that as of Sunday, El Salvador has accumulated 55,965.77 Bitcoins.
Under Bukele's leadership, El Salvador started buying one BTC daily since late 2022 – during the crypto winter triggered by the collapse of FTX. Regardless of market action, the country continued its daily Bitcoin purchase.
What's Next for Top Digital Coin?
Analysts have had various predictions about Bitcoin's future price action, but basically, the majority of them believe the world's first decentralized cryptocurrency has no other path but upwards.
For Maksym Sakharov, co-founder and board member of decentralized finance platform WeFi, there could be more institutional action around BTC, especially with the people around Trump who either have publicly disclosed Bitcoin holdings or are known to be pro-crypto.
"Pro-crypto figures like J.D. Vance, RFK Jr. (Robert F. Kennedy Jr.), Elon Musk, and Howard Lutnick have a close relationship with President Donald Trump. This close association might be instrumental in helping the incoming administration to keep its crypto promises," Sakharov told International Business Times.
"With the appointment of top leaders in government with Bitcoin holdings, the digital assets ecosystem will get a major endorsement that can largely convince more conservative traditional investors," he added.
Bitcoin has since retreated to the $104,000 high but remains in the green and is still up over 100% in the past year.
