Bitcoin skyrocketed past $107,000 on Monday, fueled by optimism over President-elect Donald Trump’s plans to create a U.S. Bitcoin strategic reserve. The cryptocurrency hit a record $107,148 before settling at $106,877, a 5.43% rise from late Friday. Ethereum, the second-largest digital currency, climbed 1.85% to $3,975.70.

The surge follows Trump’s reiteration of his commitment to a crypto-friendly regulatory framework and his intention to establish a Bitcoin reserve akin to the nation’s strategic oil reserves. Speaking to CNBC last week, Trump said, “We’re gonna do something great with crypto because we don’t want China or anybody else – not just China but others are embracing it – and we want to be the head.”

Market analysts believe the announcement marks a turning point. “We’re in blue-sky territory here,” said Tony Sycamore, an analyst at IG. “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 of this news.”

Bitcoin has gained nearly 150% in 2024, driven by expectations of a friendlier U.S. stance on digital currencies under Trump’s administration. His campaign’s embrace of cryptocurrency has contrasted sharply with his earlier criticism, when he labeled crypto a “scam.” Trump has since vowed to make the U.S. the “crypto capital of the planet.”

Governments globally are considering similar reserves. As of July, nations held 2.2% of Bitcoin’s total supply, according to CoinGecko, with the U.S. accounting for nearly 200,000 Bitcoins, valued at over $20 billion. Other significant holders include China, the United Kingdom, Bhutan, and El Salvador. Russian President Vladimir Putin recently noted growing interest in alternative assets, including Bitcoin. “For example, Bitcoin – who can prohibit it? No one,” Putin remarked.

While enthusiasm is surging, some remain cautious. Federal Reserve Chair Jerome Powell has likened Bitcoin to gold, emphasizing its speculative nature. “I think we still need to be cautious on a BTC strategic reserve,” said Chris Weston, head of research at Pepperstone. “This would come with consequences which would need to be carefully considered and well telegraphed to market players.”

Trump’s pro-crypto appointments are also fueling market optimism. He has tapped David Sacks, a former PayPal executive, as White House czar for AI and cryptocurrencies, and pro-crypto attorney Paul Atkins to head the SEC. Meanwhile, exchange operator Nasdaq announced that MicroStrategy, the largest corporate holder of Bitcoin, will join the Nasdaq-100 Index on December 23.

MicroStrategy’s stock has surged over sixfold this year, buoyed by its aggressive Bitcoin investments. The company’s inclusion in the Nasdaq-100 is seen as a sign of Bitcoin’s growing mainstream acceptance. “This could potentially drive up the spot Bitcoin price,” said Matthew Dibb, CIO at Astronaut Capital.

The total cryptocurrency market has nearly doubled in 2024, reaching a record $3.8 trillion, signaling that Bitcoin’s rally may just be beginning.