Dec 16 (Reuters) - Bitcoin prices hit a record high above $107,000 on Monday after President-elect Donald Trump reiterated his plan to create a U.S. strategic reserve of bitcoin similar to the U.S. Strategic Petroleum Reserve, spurring enthusiasm among cryptocurrency bulls.
Investor sentiment was also boosted by the inclusion of MicroStrategy (MSTR.O) in the tech-heavy Nasdaq 100 index, which could bring more inflows to the software company turned bitcoin buyer.
Bitcoin, the world's largest and best-known cryptocurrency, extended its gains, hitting an intraday high of $107,148 and last traded at $106,877, up 5.43% from late Friday. Ethereum, the second-largest digital currency, rose 1.85% to $3,975.70.
"We're in a vacuum right now," said Tony Sycamore, an analyst at IG. "The next number the market was expecting was $110,000. The pullback that a lot of people were expecting didn't happen because we got this news now."
Bitcoin and cryptocurrencies are in the spotlight as investors bet that the incoming Trump administration will bring a friendlier regulatory environment, boosting confidence in the alternative currency.
"We're going to do some great things in cryptocurrencies because we don't want China or any other country — we want to be the leader," Trump told CNBC.
Asked if he plans to create a crypto reserve similar to oil reserves, Trump said, "Yes, I think so."
As of July, governments around the world held 2.2% of the total supply of Bitcoin, according to data provider CoinGecko. The United States owns nearly 200,000 bitcoins, worth more than $20 billion at current levels.
China, the United Kingdom, Bhutan and El Salvador are other countries with large amounts of Bitcoin.
Other countries have also been considering cryptocurrency strategic reserves.
Russian President Vladimir Putin said earlier this month that the current U.S. administration's use of the dollar for political purposes has undermined the dollar's status as the global reserve currency, forcing many countries to turn to alternative assets, including cryptocurrencies.
However, there are skeptics, with Federal Reserve Chairman Jerome Powell comparing Bitcoin to gold earlier this month.
"I think we still need to be cautious about BTC strategic reserves, at least considering that this is unlikely to happen anytime soon," said Chris Weston, head of research at Pepperstone.
"Any comments from Trump that bring more hope that a strategic reserve plan will be developed is obviously a positive."
Crypto Boost
Bitcoin prices have soared more than 50% since the election of Trump and many other candidates who support cryptocurrency on November 5. The total value of the cryptocurrency market has nearly doubled this year to more than $3.8 trillion.
Trump, who once called cryptocurrencies a scam, embraced digital assets during his campaign and pledged to make the U.S. the "crypto capital of the planet."
Trump named former PayPal executive David Sacks as White House chief of artificial intelligence and cryptocurrency.
Trump also said he would nominate cryptocurrency supporter Paul Atkins to serve as chairman of the U.S. Securities and Exchange Commission.
On Friday, Nasdaq said MicroStrategy, led by Chief Executive Michael Saylor, would be added to the Nasdaq 100 index before markets open on Dec. 23.
MicroStrategy is an active investor in Bitcoin, with its shares surging more than sixfold this year to a market value of nearly $94 billion. The company is now the largest corporate holder of the cryptocurrency.
As part of the Nasdaq 100, investors will buy MicroStrategy shares to reflect the holdings of the broader index, potentially increasing demand and enabling the company to buy more cryptocurrencies.
“The inclusion seems a little unexpected, but that hasn’t stopped the excitement, with many seeing this as the start of a capital recycling cycle that could push up the spot price of Bitcoin,” said Matthew Dibb, chief investment officer at Astronaut Capital.
MicroStrategy shares rose 4.2% on Monday.
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