Donald Trump recently claimed credit for Bitcoin exceeding $100,000, invigorating the crypto community ahead of his upcoming inauguration. Following his announcement of a potential SEC leadership change, Bitcoin’s value surged over 8%. Trump’s shift from labeling cryptocurrencies a scam to advocating for their acceptance signals a more favorable regulatory environment. The crypto market, including notable players like MicroStrategy and Coinbase, is experiencing significant gains, further fueled by new investment products tracking Bitcoin and Ether.
Donald Trump’s Influence on Bitcoin’s Surge
On Thursday, Donald Trump boldly took credit for Bitcoin’s remarkable achievement of surpassing the $100,000 milestone, a significant event that transpired just one month after his election. As a strong advocate for the cryptocurrency sector, Trump continues to energize the crypto community.
Expressing his sentiments on his Truth Social platform, Trump stated, “Congratulations to Bitcoin fans!!! $100,000!!! THERE’S NO REASON TO CELEBRATE!!! Together, we will restore greatness to America.” With his inauguration set for January 20, the excitement surrounding Bitcoin is palpable.
Market Reaction and Regulatory Changes
As of 1:25 PM GMT, Bitcoin, the largest cryptocurrency by market cap, was trading at an impressive $103,192.25, a notable increase from approximately $69,000 on November 5, the day of the election. Following Trump’s announcement regarding the potential appointment of a close associate to lead the U.S. Securities and Exchange Commission (SEC), Bitcoin reached a peak of $103,800.45 overnight.
This unprecedented level was unimaginable 16 years ago when Bitcoin was first introduced, yet it now solidifies the legitimacy of digital assets. The anticipated return of Trump to the White House is viewed favorably by the crypto community, especially with influential figures like Elon Musk involved.
During his initial term, Trump labeled cryptocurrencies as a scam, but his recent campaign, partially funded by crypto interests, showcased a shift in perspective. He expressed aspirations to transform the U.S. into the “world capital of Bitcoin and cryptocurrencies.”
Following Trump’s announcement, the price of Bitcoin surged over 8% overnight, reflecting the optimism within the crypto community regarding a more favorable regulatory environment. The potential appointment of Republican lawyer Paul Atkins to head the SEC has sparked excitement, as he has previously criticized the SEC for its strict stance on cryptocurrency firms.
Atkins’ leadership is expected to replace Gary Gensler, whose stringent regulations had frustrated the crypto industry. The recent market rally is also fueled by rumors of a possible ministry for cryptocurrencies and a strategic reserve of Bitcoins, which could further legitimize the digital currency.
Experts believe that Trump’s presidency may pave the way for broader acceptance of cryptocurrencies in everyday transactions, including tax payments. Kathleen Brooks, an expert from XTB, highlighted, “There is a greater chance of that happening.”
In the wake of the elections, various cryptocurrencies, including Bitcoin service provider MicroStrategy and exchange platform Coinbase, have experienced significant price increases. Even Dogecoin, originally created as a joke and favored by Elon Musk, has seen a resurgence.
Initially birthed from a libertarian dream in 2008, Bitcoin aimed to liberate users from financial institution control through blockchain technology. Despite its tumultuous history, including associations with financial scandals, Bitcoin is now striving for mainstream acceptance. Countries like El Salvador and the Central African Republic have adopted Bitcoin as legal tender, though not without challenges in garnering public support.
In the U.S., the introduction of two new investment products (ETFs) tracking Bitcoin and Ether has drawn substantial investment this year, significantly contributing to the cryptocurrency’s price surge.