Bitcoin has reached a record high, surpassing $106,000, following comments from President-elect Donald Trump about the possibility of establishing a U.S. bitcoin strategic reserve, similar to the country’s strategic oil reserve.

This news has invigorated crypto investors.

The largest cryptocurrency hit a peak of $106,533 before settling at approximately $104,462, reflecting a 3.2% increase. Ether, another prominent cryptocurrency, also saw gains, rising 1.5% to $3,965.

Analysts have noted that the market is entering “blue sky territory,” with expectations that prices could soon reach $110,000. “The anticipated pullback did not occur due to this positive news,” said Tony Sycamore, an analyst at IG.

Investor sentiment has been buoyed by MicroStrategy’s inclusion in the Nasdaq 100 index, potentially leading to increased investments for the software company, which has aggressively purchased bitcoin.

As the Trump administration approaches, many investors are optimistic about a more favorable regulatory environment for cryptocurrencies.

Bitcoin has appreciated by 192% this year alone.

Trump expressed his intent to foster a strong U.S. position in the crypto market, stating, “We want to be ahead.”

He affirmed his plans for a crypto reserve, responding positively when asked about the idea.

Globally, governments hold about 2.2% of bitcoin’s total supply, with the U.S. owning nearly 200,000 bitcoins valued at over $20 billion. Other countries, including China and the UK, also possess significant bitcoin reserves.

Despite the optimism, some experts urge caution. Federal Reserve Chair Jerome Powell recently compared bitcoin to gold, and analysts emphasize that the implementation of a strategic reserve would be complex and time-consuming.

Bitcoin’s surge follows a significant rally since the November 5 elections, which saw Trump and several pro-crypto candidates elected.

The overall cryptocurrency market has nearly doubled this year, reaching a total value of over $3.8 trillion.

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In a further sign of the growing interest in digital assets, Trump has appointed former PayPal executive David Sacks as a White House advisor on AI and cryptocurrencies. He has also indicated plans to nominate pro-crypto attorney Paul Atkins to lead the Securities and Exchange Commission. As excitement builds around bitcoin and other cryptocurrencies, MicroStrategy’s stock has soared, making it the largest corporate holder of bitcoin, with a market value approaching $94 billion.