Bitcoin rose to a new all-time high ahead of Donald Trump’s inauguration for his second term as US president, topping $109,000 before settling around $108,214 – up 6.5 per cent.
The surge in the popular cryptocurrency reflects investor optimism that the incoming Trump administration will adopt a more positive stance toward digital assets.
The so-called “Trump effect” has prompted hopes that the president will use his executive powers to reduce the regulatory burden on cryptocurrency companies and help integrate digital currencies into major financial markets. Trump, who was initially skeptical of cryptocurrencies, reversed course with a pledge to make America the “cryptocurrency capital of the planet” and create a “strategic reserve” of bitcoin.
According to reports, Trump may sign an executive order in the early days of his presidency to create a “cryptocurrency advisory council,” an idea he floated in July. He is also expected to fire Gary Gensler, Chairman of the Securities and Exchange Commission, who has led a crackdown on the cryptocurrency industry; Gensler will step down on Monday to pre-empt his dismissal.
Over the weekend, Trump launched the “meme coin” $Trump, while his wife Melania introduced her own token, $Melania. The couple also created World Liberty Financial, a family-run cryptocurrency trading venture.
The promise of a cryptocurrency-focused White House also helped lift traditional markets: the FTSE 100 rose 0.14 percent, to 8,518.12, while the British pound was up 0.18 percent against the dollar at $1.2197. Investors believe that Trump’s flurry of executive orders – potentially as many as 200 on his first day – will help stimulate the cryptocurrency and stock markets.
Bitcoin has come a long way since its inception 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, also fueled by expectations that the Trump administration will help bring cryptocurrencies into the financial mainstream.
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