Bitcoin crosses all-time high of $107,000 — what do experts say are the reasons? | Stock Market News

The Donald Trump wave has kept Bitcoin soaring for another week after it notched a seven-week winning streak on December 15 — its longest such run since 2021, according to a Bloomberg report.

The world’s biggest cryptocurrency lifted by over 4.8 per cent late on December 16 to reach an impressive new all-time record high of $107,791, the report said.

At the time of writing at 9.15 am (IST) on December 17, Bitcoin was trading at $106,913.89, up 2.20 per cent from the previous day. Its market capitalisation was also up to $2.11 trillion, a 1.81 per cent increase over the previous day.

Why The Upward Momentum?

According to the report, in addition to the buoyancy from Trump’s promises for a more pro-crypto government and statements that indicate a likely United States Bitcoin reserve, the inclusion of MicroStrategy Inc. in the Nasdaq 100 pushed the digital token.

MicroStrategy Inc. said on December 16 that it bought another $1.5 billion of Bitcoin in the past week.

• Keith Brainard, research director for the National Association of State Retirement Administrators, told AP that he doesn’t expect many public pension fund investment professionals, who oversee nearly $6 trillion in assets, to invest in crypto. “Pension fund professionals take risks they deem to be appropriate, but bitcoin investing has a short track record, might only fit into a niche asset class and may not fit the risk-to-reward profile they seek. There might be a bit of dabbling in Bitcoin. But it’s difficult to envision a scenario in which pension funds right now are willing to make a commitment.”
• Chris Weston, head of research at Pepperstone, was also cautious. He told Reuters, “I 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. Of course, any comment from Trump that offers an increased degree of hope that plans for a strategic reserve are evolving is an obvious tailwind, but this would come with consequences which would need to be carefully considered and well telegraphed to market players.”
• Tony Sycamore, an analyst at IG, told Reuters, “We’re in blue sky territory here. The next figure the market will be looking for is $110,000. The pullback that a lot of people were waiting for just didn’t happen because now we’ve got this news (Trump’s plans for a US crypto reserve).”

(With inputs from Bloomberg, Reuters and AP)