Bitcoin soared 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 popular cryptocurrency’s surge reflects investors’ optimism that Trump’s incoming administration will adopt a more favourable stance towards digital assets.
The so-called “Trump effect” has spurred hopes that the president will use executive powers to reduce the regulatory burden on crypto firms and help integrate digital currencies into mainstream financial markets. Trump, who initially doubted cryptocurrencies, has reversed course with a pledge to make America “the crypto capital of the planet” and to create a “strategic reserve” of bitcoin.
According to reports, Trump may sign an executive order in the early days of 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 has spearheaded a clampdown on the crypto industry; Gensler is standing 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 have also started World Liberty Financial, a family-run venture to trade cryptocurrencies.
The promise of a crypto-focused White House also helped lift traditional markets: the FTSE 100 nudged up 0.14 per cent, hitting 8,518.12, while sterling strengthened 0.18 per cent against the dollar at $1.2197. Investors believe Trump’s flurry of executive orders — potentially as many as 200 on his first day — will help spur both digital currency and equity markets.
Bitcoin has come a long way since its 2008 creation. Once worth next to nothing, it traded at $7,333 five years ago. It crossed the $100,000 mark early last month, further fuelled by expectations that Trump’s administration would help bring cryptocurrencies into the financial mainstream.
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Bitcoin climbs above $109,000 on hopes of pro-crypto Trump agenda