Bitcoin’s price surged past $106,000 on Thursday, fueled by developments in U.S. crypto policy and speculation surrounding President Donald Trump’s plans for a national Bitcoin reserve.
Bitcoin’s price surged past $106,000 on Thursday, fueled by developments in U.S. crypto policy and speculation surrounding President Donald Trump’s plans for a national Bitcoin reserve. Early in the day, the cryptocurrency traded between $101,000 and $102,000 before a series of announcements triggered significant market movement.
U.S. Senator Cynthia Lummis, a known Bitcoin advocate, hinted at upcoming news in a post on X (formerly Twitter), saying, “Big things are coming,” with a Bitcoin logo in place of the first letter. She followed up with a note to “stay tuned for 10 a.m.” The anticipation led to an initial spike above $105,000 before dipping slightly and then climbing again to $106,732, the highest price since earlier in the week.
Later, Lummis announced she had been appointed Chair of the Senate Banking Committee’s new Subcommittee on Digital Assets. She stated, “Digital assets are the future,” calling for bipartisan legislation to regulate cryptocurrencies and advocating for a strategic Bitcoin reserve to strengthen the U.S. dollar. Her appointment added momentum to Bitcoin’s price rise, which reached 3% on the day and 7% for the week.
In parallel, reports emerged that President Trump was set to hold a call with Nayib Bukele, the president of El Salvador. Under Bukele’s leadership, El Salvador adopted Bitcoin as legal tender in 2021 and holds over 6,000 BTC, worth approximately $622 million, as a strategic reserve. This potential discussion fueled speculation about U.S. crypto policy, particularly regarding Trump’s campaign promises to create a national Bitcoin reserve and establish the U.S. as a global leader in digital assets.
Market observers noted increased optimism among traders. Binance CEO Changpeng “CZ” Zhao remarked on social media, “U.S. Strategic Bitcoin Reserve pretty much confirmed. Crypto moving at crypto speed again.” While no formal announcement was made regarding a U.S. reserve, the developments signaled growing interest in integrating Bitcoin into national financial strategies.
Despite the positive market response, skepticism remains. Data from crypto prediction platform Polymarket shows that only 42% of participants believe Trump will establish a Bitcoin reserve within his first 100 days in office.
Thursday’s events reflect broader momentum in U.S. crypto policy, with lawmakers and officials signaling greater engagement in digital assets. As Bitcoin maintains its position above $106,000, its future as a potential national reserve asset remains a topic of keen interest, driven by political developments and market speculation.
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