Bitcoin Hits Record High as Investors Bet on Pro-Crypto Trump Administration

Bitcoin surged to a new all-time high ahead of Donald Trump’s second-term inauguration, topping $109,000 before settling at $108,214, marking a 6.5% increase. This surge in the popular cryptocurrency reflects growing optimism that the incoming administration will adopt a more favorable stance towards digital assets.

The rise in Bitcoin’s price, often referred to as the “Trump effect,” has spurred hopes that the president will use his executive powers to ease the regulatory burden on crypto firms. Investors are optimistic that Trump will integrate digital currencies into the mainstream financial system. Trump, who initially expressed skepticism about cryptocurrencies, has recently reversed course, pledging to make America the “crypto capital of the planet” and to create a “strategic reserve” of Bitcoin.

Reports indicate that Trump may sign an executive order early in his presidency to establish a “crypto advisory council,” a proposal he first mentioned in July. Additionally, Trump is expected to remove Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), who has been a leading figure in the regulatory crackdown on the crypto industry. Gensler is reportedly stepping down on Monday in anticipation of his dismissal.

In a further push to embrace digital currencies, Trump launched a new “meme coin,” called $Trump, over the weekend, while his wife, Melania Trump, introduced her own token, $Melania. The couple has also ventured into the cryptocurrency space through World Liberty Financial, a family-run business focused on trading digital assets.

The promise of a crypto-friendly White House has also provided a boost to traditional markets. The FTSE 100 saw a modest rise of 0.14%, closing at 8,518.12, while the British pound strengthened by 0.18% against the dollar, reaching $1.2197. Investors are hopeful that Trump’s anticipated flurry of executive orders, potentially as many as 200 on his first day, will stimulate both the digital currency and equity markets.

Bitcoin, which was virtually worthless when it was created in 2008, has seen a dramatic rise in value. Five years ago, it was trading at just $7,333, and it crossed the $100,000 mark early last month. The cryptocurrency’s rise is further fueled by expectations that Trump’s administration will help integrate digital currencies into the financial mainstream, making them more accessible and appealing to a broader range of investors.