Bitcoin Soars Above $109,000 as Trump Era Fuels Crypto Market Frenzy

Bitcoin surged to a record high of over $109,000 early Monday, just hours before Donald Trump’s inauguration, as the cryptocurrency industry anticipates a new era of favorable regulations and support under his presidency, The Associated Press reports.

The price jump caps a period of intense activity and optimism within the crypto market following Trump’s election victory.

Once a skeptic who called Bitcoin a “scam,” Trump has become a vocal advocate for digital currencies, vowing to make the US the “crypto capital” of the world. He has launched his own cryptocurrency venture and promised to take early action in his presidency to establish a US crypto stockpile, enact industry-friendly regulations, and appoint a “crypto czar.”

The cryptocurrency sector has long felt stifled by what it considered hostile policies under the Biden administration, marked by strict enforcement actions and accounting policies. Outgoing SEC Chairman Gary Gensler defended his office’s actions, citing the industry as “rife with bad actors.” Trump’s ascendance is being hailed as a potential turning point, with the industry banking on his promises for a more supportive regulatory framework.

Adding to the celebratory atmosphere, key industry players held the first-ever “Crypto Ball” on Friday, a sold-out event costing thousands of dollars per ticket, designed to celebrate the incoming “crypto president.”

Trump’s plans include the creation of a special advisory council to provide guidance on crafting “clear and straightforward” crypto regulations within his first 100 days. He has already appointed tech executive David Sacks as the administration’s crypto “czar” and named former congressional candidate Bo Hines as the executive director of the “Presidential Council of Advisers for Digital Assets.”

Beyond regulatory changes, Trump has promised to stockpile Bitcoin, similar to gold reserves, and has stated that the U.S. government will retain, rather than auction off, seized Bitcoin assets. A draft executive order has been circulated online, proposing a “Strategic Bitcoin Reserve” managed by the Treasury Department, with a target of at least $21 billion in Bitcoin holdings.

Bitcoin, created in 2009 as a decentralized electronic currency, has experienced a tumultuous journey from the financial fringes to the mainstream. Its highly volatile nature has attracted criticism and scrutiny, particularly its use in illicit activities. Despite this, the industry has demonstrated resilience, surviving multiple price drops. Since Trump’s election win, Bitcoin has surged, topping $100,000 for the first time last month and now reaching new highs ahead of his inauguration. The price jumped over $9,000 on Monday alone, according to CoinDesk, a stark contrast to its price of about $20,000 just two years ago.

Further solidifying the industry’s optimism, Trump’s picks for key cabinet and regulatory positions are known crypto supporters.

Trump’s renewed promise to commute the life sentence of Ross Ulbricht, the founder of the Silk Road website, has also energized some crypto advocates and libertarian activists.