Bitcoin Price Hits Another Record Amid Reserve Status Speculation

For the first time, Bitcoin’s price surpassed $106,000, fueled by mounting optimism about its potential role as a U.S. reserve asset.

This milestone came on the heels of President-elect Donald Trump’s announcement to create a Bitcoin strategic reserve, a move reminiscent of the U.S. Strategic Petroleum Reserve.

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In a Thursday interview with CNCB, Trump reaffirmed his administration’s commitment to establishing such a reserve, stating, “We’re going to do something great with crypto because we don’t want China or anybody else— not just China but others—embracing it ahead of us.”

As excitement around digital assets builds, interest isn’t confined to Bitcoin alone.

Crypto exchange-traded products (ETPs) have experienced record-breaking inflows. According to CoinShares, a staggering $3.2 billion flowed into these products last week, with Bitcoin accounting for more than half of these investments on weekly, monthly, and yearly bases.

Arthur Hayes, co-founder of BitMEX, predicts Bitcoin could reach “hundreds of thousands of dollars, maybe $1 million” if it gains formal reserve status. Hayes believes that a reserve-backed Bitcoin system could catalyze an influx of institutional and individual investors.

Similarly, Bernstein analysts Gautam Chhugani and Mahika Sapra forecast Bitcoin hitting $500,000 by 2029 and $1 million by 2033. Their thesis banks on regulated Bitcoin ETFs drawing more traditional capital to crypto markets.

In their view, Bitcoin could claim 15% of the “digital gold” demand by 2033.

Skeptics, however, highlight Bitcoin’s notorious volatility as a significant hurdle for its adoption as a reserve asset. Critics also point out that Bitcoin still lacks the stability traditionally associated with reserves like gold or U.S. Treasury bonds.

Regardless of these debates, Bitcoin’s mainstream adoption is accelerating. According to CoinShares, Bitcoin ETFs now hold over $130 billion in assets globally, with inflows last week alone representing 40% of all Bitcoin inflows for the year.