Bitcoin Hits Historic High of $106K: How Trump’s Comments and Fed Moves Are Impacting Crypto Markets

Bitcoin, the leading cryptocurrency, surged to an all-time high on Monday, underscoring its strong performance in the digital asset market.

According to Coinbase, a major U.S. cryptocurrency exchange, Bitcoin traded at $106,458 at 2:44 PM Eastern Time (11:44 AM Pacific Time), marking a 3.16% increase from the previous day. The digital currency briefly touched $107,800, breaking its previous record set just a day earlier.

Other cryptocurrencies also experienced gains. Ethereum climbed 3.84%, surpassing the $4,000 mark to reach $4,062. Ripple rose 2.51% to trade at $2.47, while Dogecoin increased 0.68% to $0.41. Solana, however, dipped slightly by 1.11%, settling at $219.

The remarkable surge in Bitcoin’s value is largely attributed to recent comments by President-elect Donald Trump.

In an interview with CNBC, Trump revealed that his administration is considering establishing a strategic reserve fund for Bitcoin to ensure America’s leadership in the cryptocurrency sector.

“We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,” Trump stated, highlighting the importance of U.S. dominance in the digital currency space.

Adding to Bitcoin’s upward momentum is the growing anticipation of potential interest rate cuts by the Federal Reserve.

CNBC reported that investors expect the Fed to lower rates at its upcoming Federal Open Market Committee (FOMC) meeting scheduled for the end of the year.

Historically, interest rate cuts have led to a weaker dollar and increased money supply—factors that tend to positively influence Bitcoin’s long-term value.

Meanwhile, institutional interest in Bitcoin continues to grow. Michael Saylor, the founder of MicroStrategy, announced that his firm has acquired an additional 15,350 Bitcoins, bringing its total holdings to an impressive 439,000 coins.

At current market rates, MicroStrategy’s Bitcoin portfolio is valued at approximately $46 billion, clearly reflecting rising confidence in cryptocurrency as a mainstream investment.