{"id":13285,"date":"2024-12-17T04:52:57","date_gmt":"2024-12-17T04:52:57","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/12\/17\/bitcoin-reaches-new-record-high-on-reserve-asset-speculation\/"},"modified":"2024-12-17T04:52:57","modified_gmt":"2024-12-17T04:52:57","slug":"bitcoin-reaches-new-record-high-on-reserve-asset-speculation","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/12\/17\/bitcoin-reaches-new-record-high-on-reserve-asset-speculation\/","title":{"rendered":"Bitcoin Reaches New Record High on Reserve Asset Speculation"},"content":{"rendered":"<\/p>\n

Bitcoin hit a new record high of US$107,554 on December 16 following growing interest in Bitcoin as a potential reserve asset.<\/strong><\/p>\n

The speculations were spurred by a statement from US President-elect Donald Trump about creating a strategic reserve for cryptocurrencies.<\/p>\n

\u201cWe\u2019re going to do something great with crypto because we don\u2019t want China or anybody else \u2014 not just China but others \u2014embracing it ahead of us,\u201d Trump said in a CNBC interview on December 12.<\/p>\n

He further emphasized his administration\u2019s intention to explore a Bitcoin reserve to strengthen the US position in the global cryptocurrency landscape.<\/p>\n

The prospect of Bitcoin gaining reserve asset status has fueled institutional interest in the digital currency. Data from CoinShares showed that digital asset investment products saw US$3.2 billion in inflows last week, marking 10 consecutive weeks of gains.<\/p>\n

Bitcoin products, including exchange-traded funds (ETFs), accounted for US$2 billion of these inflows, while Ethereum investment products attracted US$1 billion.<\/p>\n

According to CoinShares, global Bitcoin ETFs now manage over US$135 billion in assets, reflecting heightened institutional adoption.<\/p>\n

Market observers and analysts have presented mixed projections for Bitcoin\u2019s future following the statements.<\/p>\n

Arthur Hayes, co-founder of BitMEX, told Forbes that Bitcoin could reach prices between \u201chundreds of thousands to US$1 million\u201d if it secures formal reserve status.<\/p>\n

Bernstein analysts forecast Bitcoin reaching US$500,000 by 2029 and US$1 million by 2033, driven by the adoption of regulated Bitcoin ETFs.<\/p>\n

However, skeptics argue that Bitcoin\u2019s volatility and lack of stability compared to traditional reserves like gold or government bonds remain significant barriers.<\/p>\n

Chris Weston, head of research at Pepperstone, cautioned against overly optimistic expectations, stating that implementing a strategic Bitcoin reserve would require strategic planning and communication.<\/p>\n

\u2018I think we still need to be cautious on a BTC strategic reserve, and at least consider that this is not likely to happen anytime soon,\u2019 Weston told Reuters.<\/p>\n

Worldwide, governments have started accumulating Bitcoin as part of their reserve strategies.<\/p>\n

As of July, global governments held 2.2 percent of Bitcoin\u2019s total supply, with the United States owning nearly 200,000 Bitcoin worth over US$20 billion. Other significant holders include China, the UK, Bhutan and El Salvador.<\/p>\n

Russian President Vladimir Putin has pointed to cryptocurrencies as an alternative reserve asset amid declining confidence in the US dollar, stating that Bitcoin \u2018cannot be prohibited by anyone.\u2019<\/p>\n

Since the US election on November 5, Bitcoin\u2019s price has gained more than 50 percent, with the cryptocurrency\u2019s total market capitalization nearing US$3.8 trillion.<\/p>\n

Trump\u2019s pro-crypto stance during his campaign and subsequent announcements have contributed to growing confidence in the sector.<\/p>\n

The President-elect recently named David Sacks, a former PayPal (NASDAQ:PYPL) executive, as White House czar for artificial intelligence and cryptocurrencies.<\/p>\n

Additionally, pro-crypto Washington attorney Paul Atkins is expected to lead the Securities and Exchange Commission under Trump\u2019s administration.<\/p>\n

<\/strong><\/strong><\/strong><\/strong><\/p>\n

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Bitcoin hit a new record high of US$107,554 on December 16 following growing interest in Bitcoin as a potential reserve asset. The speculations were spurred by a statement from US President-elect Donald Trump about creating a strategic reserve for cryptocurrencies. \u201cWe\u2019re going to do something great with crypto because we don\u2019t want China or anybody […]<\/p>\n","protected":false},"author":0,"featured_media":13286,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-13285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=13285"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13285\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/13286"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=13285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=13285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=13285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}