Bitcoin surges past $105,000 amid Trump plans

In a significant market development, Bitcoin has surged to unprecedented heights, breaking through $105,000 in Asian trading. The cryptocurrency's remarkable ascent comes in the wake of President-elect Donald Trump's recent statements suggesting the creation of a US bitcoin strategic reserve, similar to existing oil reserves.

Trump's comments, expressing intentions to do "something great" with crypto to counter China's influence, have fueled a 50% increase in Bitcoin's value since his election victory. His administration's crypto-friendly stance, including the appointment of digital asset advocates to key regulatory positions, has bolstered market confidence.

The cryptocurrency's rally coincides with broader financial market movements, as the US dollar maintains strength near a three-week high against major currencies. Markets are anticipating the Federal Reserve's upcoming interest rate decision, with expectations of a quarter-point reduction while signaling measured easing for 2025.

The surge has defied some analysts' expectations of a pullback after crossing the $100,000 threshold. Market sentiment remains highly optimistic, with analysts now targeting the $110,000 level. The momentum gained additional support following Russian President Vladimir Putin's recent comments questioning the necessity of holding state reserves in foreign currencies and suggesting Bitcoin as an alternative.

However, Federal Reserve Chair Jerome Powell maintains a skeptical stance, highlighting Bitcoin's volatility and questioning its utility as a payment method or store of value.

The cryptocurrency's historic rise reflects growing institutional acceptance and changing political attitudes toward digital assets, marking a potential shift in how major economies approach cryptocurrency integration into their financial systems.