Bitcoin (BTC-USD) just blasted through its all-time high, hitting $106,554 on Sunday, and the crypto world is buzzing. The catalyst? President-elect Donald Trump doubling down on plans to create a U.S. Bitcoin reserve. Trump's vision to position the U.S. as the global crypto leader has sparked a wave of optimism, with promises of a friendlier regulatory environment and potential executive orders to elevate Bitcoin as a strategic asset. We're gonna do something great with crypto, Trump said, underscoring his intent to stay ahead of rivals like China and Russia. Markets have taken note, driving Bitcoin up more than 50% since the U.S. election.

Institutional muscle is backing the rally, too. MicroStrategy (NASDAQ:MSTR), already sitting on a jaw-dropping 423,650 Bitcoin stash, is hinting at fresh purchases just as it gets added to the Nasdaq-100 Index. This move is expected to unlock even more capital, pushing prices higher. Meanwhile, digital asset investment products pulled in a record $3.2 billion last week, with Bitcoin dominating inflows at $2 billion. Analysts are calling it blue sky territory as the $110K target looms. All signs point to a seismic shift in how governments and institutions view cryptoless as a fringe gamble and more as a cornerstone of financial strategy.

Still, not everyone's buying into the hype. Federal Reserve Chair Jerome Powell and other skeptics warn of Bitcoin's volatility and the logistical hurdles of turning Trump's vision into reality. But for now, the momentum is undeniable. With Bitcoin up nearly 200% this year and institutional players like MicroStrategy pushing the envelope, the crypto market feels like it's sitting on the cusp of something massive. Buckle up, because this story is far from over.

This article first appeared on GuruFocus.