Key Points
- Bitcoin (BTC) reached a record high following former U.S. President Donald Trump’s announcement of a U.S. Bitcoin strategic reserve.
- Bitcoin’s network hashrate has reached record levels, indicating strong network security and economic incentives for miners.
Bitcoin (BTC) soared to an unprecedented high on Monday, following a surge in institutional interest. This spike was triggered by President-elect Donald Trump’s announcement of plans for a Bitcoin reserve.
Record Highs and Strategic Reserves
Bitcoin’s price peaked at $106,488.25 at 12:40 AM UTC after a continuous 25-minute climb. This increase was a response to Trump’s December 12 announcement at the New York Stock Exchange about the creation of a U.S. Bitcoin strategic reserve.
Trump’s comments, aimed at ensuring U.S. supremacy over global competitors, have ignited investor enthusiasm and boosted market momentum. During an interview with CNBC, Trump stated, “We’re gonna do something great with crypto … we want to be ahead.”
The momentum was further bolstered by Republican Senator Cynthia Lummis’ BITCOIN Act. This act proposes that the U.S. purchase 1 million BTC over the next five years to combat the $35 trillion national debt. Russia is also considering a Bitcoin strategic reserve, following President Vladimir Putin’s statement that BTC cannot be banned.
Corporate Investments and Network Security
MicroStrategy, a significant corporate Bitcoin holder, purchased 21,550 BTC for $2.1 billion. This acquisition increased its total holdings to 423,650 BTC. The company is also listed on Nasdaq 100 and will be open to the public from December 23.
FOMO, or fear of missing out, has reached its peak among investors. This sentiment was triggered after U.S. Spot Bitcoin ETFs achieved a cumulative net inflow of more than $50 billion in a year.
On the miner side, Bitcoin’s network hashrate has skyrocketed to record levels. Hash rate data from Glassnode reveals that hash rates surged from 128 EH/s to over 804 EH/s, with 37% of the total computational activity taking place in 2024 alone. This strong network security and economic incentives have motivated miners to earn a cumulative revenue of $71.49 billion.