Bitcoin Reaches Record High

Bitcoin rose to a record high on Monday, driven by optimism surrounding a potential Strategic Reserve under President Donald Trump and MicroStrategy’s addition to the Nasdaq 100.

The world’s largest cryptocurrency moved above the $100,000 level, reversing a weekend downturn, following Trump’s suggestion of a Bitcoin reserve. This sentiment was further fueled by MicroStrategy Incorporated (NASDAQ:MSTR) being added to the Nasdaq 100 index, which could draw more capital to the biggest corporate Bitcoin holder.

Bitcoin increased over 3% reaching a record high of $106,569.4, trading at $104,977.1 by 00:47 ET (05:47 GMT).

On-chain data revealed significant transactions by major crypto holders, termed as whales, moving Bitcoin off major exchanges—reducing supply in open markets and driving prices higher.

Trump Discusses Bitcoin Strategic Reserve

Trump mentioned on a CNBC interview last week the possibility of creating a crypto reserve akin to the Strategic Petroleum Reserve. He indicated plans to position the U.S. as a global crypto leader, noting that other countries, including China, are adopting the technology.

During his campaign, Trump promised more favorable crypto regulations. However, analysts are uncertain about the feasibility of his plans, as any government crypto purchases would likely require increased fiscal spending—something unlikely with a Republican-led Congress focused on reducing the U.S. fiscal deficit.

Yet, the government could convert seized crypto assets into a reserve. CoinGecko reports the U.S. government holds over 200,000 coins, while China has about 190,000.

MicroStrategy Joins Nasdaq 100

Market sentiment was also buoyed by Nasdaq's announcement that MicroStrategy, the largest corporate Bitcoin holder, will be included in the Nasdaq 100 index. This move is anticipated to drive more capital inflows into MicroStrategy stock, as exchange-traded funds readjust their portfolios.

The stock surged over 400% this year as traders considered it a proxy for Bitcoin investment, with the company actively increasing its Bitcoin purchases in recent weeks, largely financed through debt.

Crypto Prices Today: Altcoins and Federal Reserve Meeting

Overall crypto prices mirrored Bitcoin's gains, though increases were tempered by anticipation of a Federal Reserve meeting this week. The central bank is expected to cut rates by 25 basis points but might signal a slower pace of cuts in 2025 due to persistent inflation concerns.

The second largest cryptocurrency, Ether, rose 2% to $3,972.39, while XRP remained steady at $2.4123. Solana and Cardano each gained 1.3%, while Polygon rose 1.5%. Among meme tokens, Dogecoin increased by 1.8%.