BTC Hits New Record Amid SBR Buzz
Bitcoin (BTCUSD) hit a new record high of $107,148 on Monday, 16 December, on the heels of President-elect Donald Trump’s announced plans to create a Strategic Bitcoin Reverse (SBR). MicroStrategy (MSTR) also received word that it would be included in the Nasdaq 100 index (NQ) as it announced its first purchase of BTC above the 100,000 mark.
The second-largest cryptocurrency, Ethereum (ETHUSD), also rose to a new high for 2024, with some analysts expecting the altcoin to extend gains to record highs during the first quarter of next year. Typically, Ether underperforms Bitcoin in the first eight months following a BTC halving, but shoots higher afterwards.
Meanwhile, cryptocurrency funds around the world continue to pour money into the market, with notable inflows into Ethereum Exchange Traded Funds (ETFs), XRP, Polkadot (DOTUSD) and Litecoin(LTCUSD) as the Christmas rally runs near full swing earlier this year.

How Might a Strategic Bitcoin Reserve (SBR) Work?
Monday’s surge to new record highs came after Trump provided an early signal during a CNBC interview last week of a potential $20 billion Strategic Bitcoin Reserve (SBR). Cryptocurrency insiders believe the President-Elect will sign an executive order on the day of his inauguration, allowing the purchase of Bitcoin using foreign exchanges, gold or other instruments with the use of the Exchange Stabilisation Fund (ESF). EFS was established in 1934 via the Gold Reserve Act (GRA) and was last amended in the late 1970s, with gold transactions continuing throughout 1971.
The strategic reserve would operate in a manner similar to the US Strategic Petroleum Reserve (SPR) created by an act of Congress in 1975, which was established following the 1973-74 Arab oil embargo to tap the oil markets in times of supply crises. In Bitcoin’s case, it could be used to pay off the huge US debt levels, amounting to around $35 trillion. Although some opponents argue whether an act of Congress is necessary, proponents go as far as to suggest the issuance of debt to bring Bitcoin out of the Department of Justice’s purview, not just the selling of gold reserves.
Meanwhile, on 12 December, the Texan House of Representatives introduced legislation to establish an SBR. Republican state Rep. Giovanni Capriglione proposed a bill stipulating that the state will begin accepting taxes, donations, and fees in Bitcoin in order to build an SBR that would be held in reserve for at least five years. Texas, the eighth-largest economy in the world, is the biggest host of Bitcoin miners in the US, and although the proposed bill did not include the direct purchase of Bitcoin, it may be viewed as a positive step towards not just a national but also a multinational SBR. Earlier in December, wires rumoured that Russian deputy of the New People party Anton Tkachen requested that Finance Minister Anton Siluanov consider a BSR to counter sanctions, inflation, and volatility in traditional currencies.
What Would an SBR Mean for Other Cryptos?
Initial efforts in July led by Republican Senator Cynthia Lummis to build an SBR as a hedge against economic uncertainty and currency devaluation have long passed. However, as Bitcoin continues its bull run in December on the back of Trump’s crypto-friendly agenda, Lummis' proposal to purchase 1 million Bitcoins over the course of the next five years, while holding and never selling the reserves, comes closer to reality. (Source: Sherwood.News)
Previous cyclical bull runs have been marked by speculation to never sell, with large drawdowns following the end of the cyclical bull market. However, this time could be different due to the fundamental drivers pushing prices higher and ETFs reducing volatility. The Bitcoin Trump rally, along with rising ETF inflows into several cryptocurrencies, is expected to drive broader demand for digital assets as institutions strive to allocate 5% of their total capital or more.
At the beginning of 2024, nearly half of the top 50 cryptocurrencies by market cap have actually outperformed BTC as the altseason nears full force in December. These include tokens issued by blockchain-backed businesses that received increased investment flows throughout the year and, most recently, due to the rotation from Bitcoin to altcoins - a precursor of a bigger altseason into 2025. As market optimism switches focus from Bitcoin to altcoins, market participants may be patiently waiting for number two, Ethereum, to recapture its previous record high and signal the beginning of the real altseason.
With the end of the year being an ideal time for altcoins, some analysts expect Ethereum to rise to $7,000 and Solana to $1,000. Fueled by technological advancement, SOL could mirror Bitcon’s price action in 2019-2021, where the King surged from $3,424 to $63,471. (Source: TheCoinRepublic)
Conclusion
Bitcoin has hit a historic milestone after recording a fresh high on 16 December amid rising momentum in the cryptocurrency market after President-elect Donald Trump announced plans for an SBR last week.
Ethereum has also seen a significant surge in 2024, with analysts predicting a $7,000 milestone in the 2025 altseason. Altcoins like Solana and Polkadot have benefited from this bullish sentiment, with an early altseason now nearing full swing.
As institutional interest grows and ETF volumes provide a cushion against volatility, the crypto space may be set for an interesting transition period.