December has witnessed a remarkable surge in cryptocurrency prices. Bitcoin, on December 5, successfully crossed the $100,000 mark and further climbed past $107,000 on December 16. This upward movement has been a significant development in the digital asset space.

The Strategic Bitcoin Reserve and Its Implications

On Monday, Bitcoin bounced near $107,800 as President-elect Trump suggested the establishment of a U.S. strategic Bitcoin reserve upon taking office. This move holds great significance as it validates Bitcoin as an investment and could potentially shape the future of the cryptocurrency market.The inclusion of MicroStrategy (MSTR) in the Nasdaq 100 and its QQQ ETF on Friday marked another milestone for Bitcoin. It shows the growing acceptance and recognition of Bitcoin as a legitimate investment asset.

Bitcoin's Price Performance in 2023 and This Year

In 2023, the world's largest cryptocurrency rebounded by about 157%. This year, Bitcoin has also shown strong growth, up by about 156% so far. These figures highlight the remarkable resilience and potential of Bitcoin in the market.

Ethereum's Price Trajectory and Performance

On December 16, Ethereum hit a high of $4,105, surpassing its previous 52-week high from March. It has been on an upward trend, jumping about 29% over the past month. However, it is still below its November 2021 peak above $4,800. This shows the volatility and potential of Ethereum in the cryptocurrency market.

Digital Asset Investments and Key Objectives

Digital asset investments are extremely volatile. While the fundamentals and technical indicators of cryptocurrencies may vary, investors should focus on key objectives. Firstly, they need to stay protected by knowing when to sell, cut losses, or capture profits. Secondly, they should be prepared to profit if the cryptocurrency starts to rebound.Despite their initial promise, cryptocurrencies have not acted as hedges against inflation. Instead, they have trended with the broader indexes. By following The Big Picture and Market Pulse, investors can track daily market trends and make informed decisions.View IBD's Best Cryptocurrencies And Crypto Stocks To Buy And Watch page to navigate the world of digital asset investments. For a deeper dive into crypto, check out the What Is Cryptocurrency? explainer page.Want market-driving info delivered straight to your inbox? Sign up for IBD’s new daily newsletter by clicking the image below.