Bitcoin's record rally hit $107,000 after United States President-elect Donald Trump reiterated that he plans to create a US Bitcoin strategic reserve similar to the country's strategic oil reserve, fueling the enthusiasm of crypto bulls.

Bitcoin, the world's largest and best-known cryptocurrency, extended gains to a session high of $107,148 and was most recently at $106,877, up 5.43 percent from late Friday. The number two digital currency, Ethereum or Ether, rose 1.85 percent to $3,975.70.

"We're in blue sky territory here," said Tony Sycamore, an analyst at IG, an online commerce provider. "The next figure the market will look for is $110,000. The pullback that many people were waiting for just didn't happen because now we have this news."

Bitcoin and crypto have been thrust into the spotlight as investors bet the incoming Trump administration will usher in a friendlier regulatory environment, bolstering sentiment around the alternative currency. Bitcoin rose by about 150 percent in 2024.

"We're going to do something great with crypto, because we don't want China or anybody else — not just China, but others embracing it — and we want to be in charge," Trump told CNBC late last week.

When asked if he plans to build a crypto reserve similar to oil reserves, Trump said: "Yes, I think so." He advocated the same move earlier this year.

Governments around the world held 2.2 percent of Bitcoin's total supply as of July, according to data provider CoinGecko, with the U.S. holding nearly 200,000 Bitcoins worth more than $20 billion at current levels.

China, the United Kingdom, Bhutan and El Salvador are the other countries with a significant amount of Bitcoins, data website Bitcoin Treasuries showed.

Other countries have also considered strategic reserves for cryptocurrencies.

Russian President Vladimir Putin said earlier this month that many countries are turning to alternative assets, including cryptocurrencies.

"For example, Bitcoin, who can ban it? Nobody," Putin said.

However, there are skeptics, with Federal Reserve Chairman Jerome Powell comparing Bitcoin to gold earlier this month. Analysts also point out that any such move will take time to implement.

"I think we still have to be careful with a BTC strategic reserve, and at least consider that it probably won't happen anytime soon," said Chris Weston, head of research at Pepperstone, a trading platform.

"Of course, any comment from Trump that offers a greater degree of hope that plans for a strategic reserve are developing is a clear wind, but it will have consequences that should be carefully considered and weighed well by market players, " he said.

Crypto boost

Bitcoin has risen more than 50 percent since the November 5 US vote in which Trump was elected along with many other pro-crypto candidates. The total value of the cryptocurrency market has nearly doubled over the year to date to a record of more than $3.8 trillion, according to CoinGecko.

Trump - who once labeled crypto a scam - embraced digital assets during his campaign, promising to make the US the "crypto capital of the planet".

Trump named a White House czar this month for artificial intelligence and cryptocurrency former PayPal CEO David Sacks, a close friend of Trump adviser and mega-donor Elon Musk.

Trump also said he would nominate pro-crypto Washington attorney Paul Atkins to head the Securities and Exchange Commission.

Stock market operator Nasdaq said Friday that MicroStrategy, led by CEO Michael Saylor, will be added to the Nasdaq-100 index, with the change taking effect before the market opens on December 23.

MicroStrategy, an aggressive investor in the world's largest crypto asset, has seen its shares rise more than sixfold this year, bringing its market value to nearly $94 billion. It is now the largest corporate holder of the cryptocurrency.

"The inclusion seems a little unexpected, but it hasn't stopped the excitement of what many believe is the start of a looping cycle of capital that could potentially drive up the spot price of Bitcoin," said Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital.

MicroStrategy shares rose 4.2 percent on Monday.