Trump has hinted at the possibility of creating a 'strategic national bitcoin reserve,' suggesting that bitcoin could potentially exceed gold's market capitalization.

Geoff Kendrick from Standard Chartered views the establishment of such a reserve as a low probability but high impact event, which could dramatically increase bitcoin prices if it comes to fruition.

The recent surge in bitcoin prices has been linked to the election of Donald Trump as president, with market observers anticipating significant announcements that could influence the cryptocurrency landscape.

Elon Musk has celebrated the bitcoin price surpassing $100,000, while also warning about the potential for U.S. bankruptcy.

In a notable shift, Musk has reportedly become an influential advisor to Trump, advocating for substantial changes to U.S. spending and policy, including the establishment of a 'Doge department.'

Musk's involvement has reignited discussions about a U.S. bitcoin strategic reserve, a concept initially proposed by Republican Senator Cynthia Lummis.

Market analysts are divided on the likelihood of a U.S. bitcoin strategic reserve, with estimates suggesting only a 25% chance of its establishment within Trump's first 100 days in office.

Despite Musk's previous criticisms of bitcoin following its peak in 2021, Tesla currently holds approximately 10,000 bitcoins, valued at nearly $1 billion.

Musk's renewed interest in the cryptocurrency market is further underscored by his praise for the impressive profits generated from El Salvador's bitcoin investments.

Lummis's proposed BITCOIN Act aims for the U.S. to acquire 1 million bitcoins over five years as a strategy to tackle the national debt, which currently stands at $35 trillion.