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Bitcoin’s record rally topped $107,000 on Monday after President-elect Donald Trump reiterated that he plans to create a US bitcoin strategic reserve similar to its strategic oil reserve, stoking the enthusiasm of crypto bulls.

Investor sentiment also got a lift from the inclusion of MicroStrategy into the tech-heavy Nasdaq 100 index that will likely lead to more inflows for the software firm turned bitcoin buyer.

Bitcoin, the world’s biggest and best known cryptocurrency, extended gains to a session high of $107,148 and was most recently at $106,877, up 5.43% from late Friday. The No. 2 digital currency ether was up 1.85% at $3,975.70.

“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG. “The next figure the market will be looking for is $110,000. The pullback that a lot of people were waiting for just didn’t happen, because now we’ve got this news.”

Bitcoin and crypto have been catapulted into the spotlight as investors wager the incoming Trump administration will usher in a friendlier regulatory environment, boosting sentiment around the alternative currency. Bitcoin is up about 150% in 2024.

“We’re gonna do something great with crypto because we don’t want China or anybody else – not just China but others are embracing it – and we want to be the head,” Trump told CNBC late last week.

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

Governments around the world held 2.2% of bitcoin’s total supply as of July, according to data provider CoinGecko, with the United States possessing nearly 200,000 bitcoins valued at more than $20 billion at current levels.

China, UK, Bhutan and El Salvador are the other countries with a significant amount of bitcoins, data site BitcoinTreasuries showed.

Other countries have also been considering cryptocurrency strategic reserves.

Russian President Vladimir Putin earlier this month said the current US administration was undermining the role of the US dollar as the reserve currency in the global economy by using it for political purposes, forcing many countries to turn to alternative assets, including cryptocurrencies.

“For example, bitcoin, who can prohibit it? No one,” Putin said.

There are skeptics though, with Federal Reserve Chair Jerome Powell likening bitcoin to gold earlier this month. Analysts also point out that any such move will take time to implement.

“I think we still need to be cautious on a BTC strategic reserve, and at least consider that this is not likely to happen anytime soon,” said Chris Weston, head of research at Pepperstone.

“Of course, any comment from Trump that offers an increased degree of hope that plans for a strategic reserve are evolving are an obvious tailwind, but this would come with consequences which would need to be carefully considered and well telegraphed to market players.”

Bitcoin has surged more than 50% since the Nov. 5 election that saw Trump elected along with many other pro-crypto candidates. The total value of the cryptocurrency market has almost doubled over the year so far to hit a record over $3.8 trillion, according to CoinGecko.

Trump – who once labeled crypto a scam – embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet.”

Trump this month named a White House czar for artificial intelligence and cryptocurrencies, former PayPal executive David Sacks, a close friend of Trump adviser and megadonor Elon Musk.

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

On Friday, exchange operator Nasdaq said MicroStrategy, led by chief executive Michael Saylor, will be added to the Nasdaq-100 Index, with the change coming into effect before the market opens on Dec. 23.

MicroStrategy, an aggressive investor in the world’s largest crypto asset, has seen its shares soar more than six-fold this year, taking its market value to almost $94 billion. It is now the largest corporate holder of the cryptocurrency.

As part of the Nasdaq 100, investors would buy MicroStrategy shares to mirror the holdings of the broader index, thereby driving up the value of the stock and allowing the company to buy more crypto, through debt and equity offerings, Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, said.

“The inclusion seems a bit unexpected, but that hasn’t stopped the excitement of what many believe to be the start of a looping cycle of capital that could potentially drive up the spot bitcoin price,” he said.

MicroStrategy shares were up 4.2% on Monday.

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Trump hints Ukraine election may be needed for peace – as he addresses Kyiv being left out of Russia talks

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Trump hints Ukraine election may be needed for peace - as he addresses Kyiv being left out of Russia talks

Donald Trump has suggested Russia’s war in Ukraine could have been “settled very easily” as he criticised Kyiv’s negotiation skills.

In comments after an extraordinary meeting between senior American and Russian officials on Tuesday morning in Saudi Arabia, the US president said of Ukraine: “They’ve had a seat [at the table] for three years and a long time before that.

“This could have been settled very easily. Just a half-baked negotiator could have settled this years ago without, I think, the loss of much land and without the loss of any lives and without the loss of cities that are just laying on their side.”

While touting his own negotiation skills, Mr Trump also said he was “more confident” about a peace deal after Tuesday’s talks, attended by US secretary of state Marco Rubio.

Follow live: Lavrov tells US that NATO troops in Ukraine is ‘unacceptable’

While speaking from Mar-a-Lago in Florida, Mr Trump also said he would not oppose seeing European peacekeeping troops stationed in Ukraine as part of a peace deal with Russia.

He also repeated a proposal that Ukrainian leader Volodymyr Zelenskyy hold elections in Ukraine as a condition of peace.

‘Not a Russian thing’

“We have a situation where we haven’t had elections in Ukraine, where we have martial law, essentially martial law in Ukraine, where the leader in Ukraine, I mean, I hate to say it, but he’s down to 4% approval rating.”

He added: “If Ukraine wants a seat at the table, wouldn’t the people have to say – it has been a long time since they had an election?

“That’s not a Russian thing, that’s something coming from me and coming from many other countries also.”

Mr Trump also told reporters he and Russian leader Vladimir Putin had discussed Ukraine before the full-scale invasion in 2022.

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“President Putin and I would talk about Ukraine, and it was the apple of his eye, I will tell you that,” he said.

“But he never, there was never a chance of him going in. And I told him: ‘You better not go in, don’t go in, don’t go in.’ And he understood that and he understood it fully.”

From Trump to Zelenskyy – it was goodbye

In another place, at another time, it would have been: “You’re fired.”

Donald Trump coined it differently when he was asked about Volodymyr Zelenskyy, but the sentiment was the same.

Asked about suggestions that Russia wanted elections in Ukraine as part of a peace deal, the US president replied: “I hate to say it, but he’s down to a 4% approval… when they want a seat at the table, wouldn’t the people of Ukraine say it’s been a long time since we had an election? That’s not a Russia thing, that’s coming from me and other countries.”

From one president to another, it was goodbye. A farewell to the notion that Trump respects Zelenskyy as an equal player in peace negotiations.

Read James Matthews’s full analysis here

US and Russia ‘need vibrant diplomatic missions’

Mr Trump added he will probably meet with Mr Putin before the end of the month.

At Tuesday morning’s talks, US and Russian officials agreed to restore embassy staffing and establish a high-level team to negotiate peace in Ukraine in another sign of the significant American change in diplomatic relations with Moscow.

Mr Rubio said the two countries “need to have vibrant diplomatic missions that are able to function normally”. The US and Russia also agreed to explore closer relations and economic cooperation at the meeting.

“Should this conflict come to an acceptable end, the incredible opportunities that exist to partner with the Russians geopolitically on issues of common interest and frankly, economically, on issues that hopefully will be good for the world and also improve our relations in the long term,” Mr Rubio said.

Read more from Sky News:
Trump’s ‘diplomacy’ does not look good for Ukraine – analysis
Starmer wants US ‘backstop’ to deter Russia
Who is attending Russia and US peace talks?

He added ending Russia’s war in Ukraine would require concessions from all sides.

The comments came as talks between Russian and US officials in Saudi Arabia ended – part of a remarkable US policy reversal after years of former president Joe Biden leading international efforts to isolate Moscow.

‘Very useful’ talks, Lavrov says

Speaking to reporters after the meeting, Russian foreign minister Sergei Lavrov said “the conversation was very useful”.

“We not only listened, but also heard each other,” Mr Lavrov said.

“And I have reason to believe that the American side has started to better understand our position, which we have once again outlined in detail, using specific examples, based on President Putin’s repeated speeches.”

US State Department spokesperson Tammy Bruce said even though Ukraine was not at the table on Tuesday, any actual peace negotiations will include the country.

Meanwhile, President Volodymyr Zelenskyy said his country will not accept any outcome from this week’s talks if Kyiv does not take part. No Ukrainian officials were present at the meeting.

U.S. Secretary of State Marco Rubio meets with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud, Saudi National Security Advisor Mosaad bin Mohammad Al-Aiban, U.S. National Security Advisor Mike Waltz, U.S. Middle East envoy Steve Witkoff, Russian Foreign Minister Sergei Lavrov and Russian President Vladimir Putin's foreign policy advisor Yuri Ushakov, at Diriyah Palace, in Riyadh, Saudi Arabia.
Pic: Reuters
Image:
Inside Tuesday’s talks in Saudi Arabia. Pic: Reuters

Ukraine losing ground to Russia

The talks came as Ukraine is slowly but steadily losing ground against more numerous Russian troops in a grinding war that began nearly three years ago.

The Ukrainian air force said Russian troops launched a barrage of 176 drones at Ukraine on Monday night, most of which were destroyed or disabled by jamming.

One Russian drone struck a residential building in Dolynska in the Kirovohrad region, wounding a mother and her two children and prompting an evacuation of 38 apartments, the regional administration reported.

Four more residential buildings were damaged by drone debris in the Cherkasy region of Ukraine, according to local officials.

European allies left scrambling

Ties between Russia and the US had fallen to their lowest level in decades in recent years – a rift that had been widening since Russia annexed Crimea from Ukraine in 2014 and worsened after Moscow’s full-scale invasion in 2022.

At that point, the US, along with European nations, imposed a raft of sanctions on Russia and the allies have repeatedly expanded the measures to damage the Russian economy.

But the recent US diplomatic blitz on the war has sent Mr Zelenskyy and key European allies scrambling to ensure a seat at the table amid concerns that Washington and Moscow could press ahead with a deal that will not be favourable to Ukraine.

On Monday, France called an emergency meeting of European nations, including the UK, to discuss the war.

Saudi Arabia seeks to be diplomatic player

The meeting between the US and Russia on Tuesday at the Diriyah Palace in the Saudi capital of Riyadh also highlights de facto leader Crown Prince Mohammed bin Salman’s efforts to be a major diplomatic player, burnishing a reputation severely tarnished by the 2018 killing of Washington Post journalist Jamal Khashoggi.

Saudi state media described the talks as happening at the prince’s direction. Saudi Arabia has also helped in prisoner negotiations and hosted Mr Zelenskyy for an Arab League summit in 2023.

Mr Zelenskyy had been due to travel to Saudi Arabia this week but rescheduled it to 10 March, suggesting he wanted to avoid his visit being linked to the US-Russia talks since Ukrainian officials were not invited.

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Donald Trump’s direction of travel in diplomacy does not look good for Ukraine

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Donald Trump's direction of travel in diplomacy does not look good for Ukraine

That the United States chose to hold talks with Russia about Ukraine without Ukraine sums up the power imbalance that is upending security assumptions for the whole of Europe.

Volodymyr Zelenskyy, the Ukrainian president, has consistently warned that Kyiv must have a seat at the negotiating table for any discussions about ending Vladimir Putin‘s war to have a chance of success. His European allies also want to have a voice.

Yet these requests were ignored by Donald Trump and his strongman approach to diplomacy, with the president instead dispatching his top diplomat and two other senior envoys to meet Russian counterparts in Saudi Arabia on Tuesday.

Steve Witkoff, Marco Rubio and Mike Waltz.
Pic: Reuters
Image:
(L-R) The US delegation in Riyadh included Steve Witkoff, Marco Rubio and Mike Waltz. Pic: Reuters

Ukraine war latest: Trump says he’s ‘more confident’ of peace deal

Mr Zelenskyy, apparently by chance, had been due to embark on a pre-planned trip to the kingdom later that same day.

However, he decided to delay the visit to avoid the appearance of giving any kind of legitimacy to the bilateral encounter between Moscow and Washington.

Unfortunately for Kyiv, beyond noisy protest, it has very limited options when it comes to channelling the disruptive force of the Trump White House in its favour.

More on Donald Trump

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The Ukrainian military remains hugely reliant on US weapons to fight Russia’s invasion and Mr Zelenskyy has made clear he would want an American element in any international security force that might be agreed upon to monitor a ceasefire – even though this is a role the US appears reluctant to fill and the Kremlin has said would be “unacceptable”.

It means Mr Trump has significant leverage over his Ukrainian counterpart which he will surely use to try to force through negotiations even on terms less favourable to Kyiv.

Read more:
Analysis – Russia tries to appeal to Trump’s business background

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Ukrainians react to US-Russia talks

The US has already reportedly tried to make Ukraine sign away a large portion of its natural resources to pay for US support – an uncomfortable offer that Mr Zelenskyy has so far declined but an indication of the new transactional approach to US foreign policy.

Mr Trump has repeatedly vowed to end Russia’s war in Ukraine – even claiming during the US election campaign that he would do this within 24 hours.

But he never spelled out how.

The past week, however, has offered an indication of the direction of travel and it does not look good for Ukraine.

From unilaterally picking up the phone to Vladimir Putin to sanctioning such a high-level meeting with the Russians in Riyadh, the only currency that seems to matter to the White House is power and right now both Kyiv and its European partners are looking all too weak.

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Donald Trump’s direction of travel in diplomacy does not look good for Ukraine

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on

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Donald Trump's direction of travel in diplomacy does not look good for Ukraine

That the United States chose to hold talks with Russia about Ukraine without Ukraine sums up the power imbalance that is upending security assumptions for the whole of Europe.

Volodymyr Zelenskyy, the Ukrainian president, has consistently warned that Kyiv must have a seat at the negotiating table for any discussions about ending Vladimir Putin‘s war to have a chance of success. His European allies also want to have a voice.

Yet these requests were ignored by Donald Trump and his strongman approach to diplomacy, with the president instead dispatching his top diplomat and two other senior envoys to meet Russian counterparts in Saudi Arabia on Tuesday.

Steve Witkoff, Marco Rubio and Mike Waltz.
Pic: Reuters
Image:
(L-R) The US delegation in Riyadh included Steve Witkoff, Marco Rubio and Mike Waltz. Pic: Reuters

Ukraine war latest: Trump says he’s ‘more confident’ of peace deal

Mr Zelenskyy, apparently by chance, had been due to embark on a pre-planned trip to the kingdom later that same day.

However, he decided to delay the visit to avoid the appearance of giving any kind of legitimacy to the bilateral encounter between Moscow and Washington.

Unfortunately for Kyiv, beyond noisy protest, it has very limited options when it comes to channelling the disruptive force of the Trump White House in its favour.

More on Donald Trump

👉 Listen to Sky News Daily on your podcast app 👈

The Ukrainian military remains hugely reliant on US weapons to fight Russia’s invasion and Mr Zelenskyy has made clear he would want an American element in any international security force that might be agreed upon to monitor a ceasefire – even though this is a role the US appears reluctant to fill and the Kremlin has said would be “unacceptable”.

It means Mr Trump has significant leverage over his Ukrainian counterpart which he will surely use to try to force through negotiations even on terms less favourable to Kyiv.

Read more:
Analysis – Russia tries to appeal to Trump’s business background

Please use Chrome browser for a more accessible video player

Ukrainians react to US-Russia talks

The US has already reportedly tried to make Ukraine sign away a large portion of its natural resources to pay for US support – an uncomfortable offer that Mr Zelenskyy has so far declined but an indication of the new transactional approach to US foreign policy.

Mr Trump has repeatedly vowed to end Russia’s war in Ukraine – even claiming during the US election campaign that he would do this within 24 hours.

But he never spelled out how.

The past week, however, has offered an indication of the direction of travel and it does not look good for Ukraine.

From unilaterally picking up the phone to Vladimir Putin to sanctioning such a high-level meeting with the Russians in Riyadh, the only currency that seems to matter to the White House is power and right now both Kyiv and its European partners are looking all too weak.

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