Bitcoin (BTC), the leading cryptocurrency globally in terms of market capitalisation, witnessed an extraordinary surge to an unprecedented high of over $106,000 on Monday. This remarkable rally was triggered by the announcement of US President-elect Donald Trump suggesting the creation of a Bitcoin strategic reserve, akin to the country's oil reserve. Such a proposal instilled optimism among crypto enthusiasts, propelling Bitcoin's value to new heights and solidifying its dominant position, currently accounting for 56.1% of the total cryptocurrency market share.

TRUMP’S SUPPORT BOOSTS INVESTOR SENTIMENT

The incoming Trump administration is widely anticipated to be more receptive to cryptocurrencies compared to the Biden White House, thereby further enhancing investor confidence. Trump's concept of a national Bitcoin reserve has sparked extensive speculation regarding the future of Bitcoin as a store of value. Moreover, the inclusion of MicroStrategy in the Nasdaq 100 index, a company with substantial Bitcoin holdings, has further intensified the enthusiasm. As a consequence, investor sentiment has undergone a significant positive shift, driving Bitcoin's meteoric ascent.For instance, Ethereum, Bitcoin's closest rival, witnessed a notable increase of 1.86% over the previous day, trading at $3,962.17 at the time of writing. Other major altcoins, including Solana, Cardano, Avalanche, and Toncoin, also experienced gains within the past 24 hours, rising by 1.38%, 1.18%, 1.74%, and 2.44% respectively. Memecoins like Dogecoin and Shiba Inu also saw substantial surges, with Dogecoin increasing by 1.64% and Shiba Inu rising by 0.54% over the same period.

IMPACT ON OTHER CRYPTOCURRENCIES

The remarkable rise of Bitcoin had a profound ripple effect on other cryptocurrencies. Ethereum's performance clearly demonstrated the domino effect, with its value climbing in tandem with Bitcoin's ascent. Solana, Cardano, Avalanche, and Toncoin also capitalised on the positive market sentiment and achieved significant gains. This shows how Bitcoin's dominance can influence the entire cryptocurrency market ecosystem.In terms of memecoins, Dogecoin and Shiba Inu's surges highlight the diverse nature of the cryptocurrency market. These meme-based cryptocurrencies have gained popularity among certain segments of the market and have shown resilience in the face of market fluctuations.

MARKET OUTLOOK: STRONG BULLISH SENTIMENT

Bitcoin's record-breaking performance has kindled optimism for the continuation of bullish momentum. Avinash Shekhar, the Co-Founder & CEO of Pi42, stated, "Bitcoin soared to yet another high of $106,533, driven by a significant amount of speculation regarding the impending establishment of a national reserve of Bitcoin, which has been advocated by President-elect Donald Trump. The optimism for bullish momentum remains strong as the market awaits a 25-basis point cut by the Federal Reserve, triggering heightened activity in the market."He further elaborated that in the derivatives market, the open interest in Bitcoin futures and options has reached record highs, indicating an overwhelmingly bullish sentiment. While the market may experience short-term consolidations before embarking on a new bull run, it is important to note that selling volumes could potentially outpace buying volumes."Resistance at $106,533 and liquidity clusters close to $100,000 may prompt short-term profit-taking. However, due to the strong institutional interest and robust buying momentum, Bitcoin appears to be targeting a range between $108,000 and $110,000," Shekhar added.