New Delhi

Bitcoin had surged to a historic high of more than $106,000 on Monday after US President-elect Donald Trump voiced a pro-cryptocurrency position. Since the election of the latter on November 5, the cryptocurrency price surged more than 50 per cent.

According to analysts, it seems that $110,000 may be the next threshold for the digital asset.

The global cryptocurrency market cap has nearly doubled in 2024, CoinGecko shows, to $3.8 trillion. 

Trump's suggestions on the creation of a Bitcoin strategic reserve in the US, similar to what it has for oil reserves, have helped this wave move forward. 

Speaking last week, Trump restated his intentions to increase the presence of Bitcoin as part of the economic agenda for his administration. 

His approach is in sharp contrast to the outgoing Federal Reserve Chair Jerome Powell, who recently called Bitcoin volatile and unsuitable for storing value while comparing it to gold. 

Trump's administration is already building the foundation for a crypto-friendly regulatory environment. 

The White House has appointed Silicon Valley entrepreneur David Sacks, a former PayPal executive and close associate of Elon Musk, as its AI and cryptocurrency advisor. 

Trump also intends to nominate Paul Atkins, a known crypto advocate, to lead the Securities and Exchange Commission (SEC). 

This comes after SEC Chairman Gary Gensler announced his resignation, effective January 20, which coincides with Trump's inauguration.

The policies of the incoming administration have rejuvenated Bitcoin promoters and investors. MicroStrategy, the largest corporate holder of bitcoin-its valuation has gone all the way to $94 billion this year, after shares multiplied sixfold. 

Analysts believe that the institutional adoption of digital currencies by Trump's leadership could make it even more pronounced.

But other nations, including Russia, are also exploring such alternatives to traditional reserves in a world where Bitcoin is growing in importance in the global financial ecosystem.

Trump's crypto-friendly stance has revived debates on whether digital currencies should be part of the US economy, setting the stage for potentially transforming policies in 2025.

(With inputs from the agencies)