Bitcoin hit a new all-time high ahead of Donald Trump’s inauguration for his second term as president of the United States, surpassing $109,000 before settling around $108,214, up 6.5%. .
The rise of the popular cryptocurrency reflects investor optimism that the new Trump administration will take a more favorable stance toward digital assets.
The so-called “Trump effect” has raised hopes that the president will use his executive powers to reduce the regulatory burden on crypto companies and help integrate digital currencies into traditional financial markets. Trump, who initially doubted cryptocurrencies, reversed course by pledging to make America “the crypto capital of the planet” and creating a “strategic reserve” of bitcoin.
There are reports that Trump may sign an executive order early in his presidency establishing a “crypto advisory council,” an idea he floated in July. He is also expected to remove Gary Gensler, chairman of the Securities and Exchange Commission, who led the crackdown on the crypto sector; Gensler is stepping down Monday to anticipate his dismissal.
Over the weekend, Trump launched the $Trump “meme coin,” while his wife, Melania, introduced her own token, $Melania. The couple also launched World Liberty Financial, a family-owned cryptocurrency trading business.
The promise of a crypto-focused White House also helped lift traditional markets: the FTSE 100 rose 0.14 percent, hitting 8,518.12, while the British pound strengthened by 0. 18 percent against the dollar at $1.2197. Investors believe Trump’s wave of executive orders – potentially as many as 200 on the first day – will help boost both digital currencies and stock markets.
Bitcoin has come a long way since its creation in 2008. It was once worth next to nothing, trading at $7,333 five years ago. It crossed the $100,000 mark early last month, fueled by expectations that the Trump administration would help bring cryptocurrencies into the financial mainstream.
