Bitcoin reached a historic high of $109,241 on Monday, just ahead of Donald Trump's inauguration as U.S. president. The cryptocurrency then slightly retreated to around $107,000. This surge comes as the incoming president, known for his plans to deregulate the cryptocurrency sector, prepares to take office.
Bitcoin’s value has risen nearly 60% since Trump won the presidential election in November, surpassing the $100,000 milestone for the first time in December. This rally gained further momentum after Trump nominated cryptocurrency advocate Paul Atkins to head the U.S. securities regulator, fueling optimism about potential deregulation.
Trump, who had previously labeled cryptocurrencies a "scam," reversed his position and became a vocal supporter during his campaign. Upon Bitcoin reaching $100,000, he tweeted, “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
Over the weekend, Trump launched his own meme coin, $TRUMP, which saw its market capitalization soar into the billions. The cryptocurrency, designed to capitalize on viral trends, sparked a buying frenzy. Trump’s wife, Melania Trump, also issued her own token, $MELANIA.
Despite the optimism, analysts, like Ipek Ozkardeskaya from Swissquote Bank, suggest that Trump’s policies may create mixed results. While pro-growth policies could benefit the U.S. economy, his tariff stance may drive inflation.
Cryptocurrencies, once criticized for fueling illicit activities, have gained mainstream attention. Trump’s presidency is expected to bring clearer regulations to the crypto space, with hopes of integrating digital currencies into the financial mainstream.
Bitcoin, which operates on a decentralized blockchain, was originally created to disrupt traditional financial institutions. Under Trump, it is anticipated that the cryptocurrency market will see more defined rules, potentially making the U.S. the “bitcoin and cryptocurrency capital of the world.”
Despite its potential, Bitcoin faces challenges, including its association with the dark web, money laundering, and environmental concerns related to energy consumption in mining.
