Bitcoin surged to over $109,000 early Monday, just hours before President-elect Donald Trump‘s inauguration, as the cryptocurrency sector anticipates major actions from the new administration.
On Friday, Bitcoin rose by five percent, and it jumped another $9,000 early Monday morning, according to the digital media company, CoinDesk.
Why It Matters
Once a skeptic of digital currencies, Trump has shifted to become one of their most vocal advocates, sparking optimism within the industry that his presidency will bring favorable policies for Bitcoin and other cryptocurrencies.
In the past, Trump dismissed Bitcoin as a “scam,” but he has since embraced it with a surprising zeal.
Mark Humphrey/AP, file
During his election campaign, he promised to make the U.S. the “crypto capital” of the world, outlining plans to create a national cryptocurrency stockpile, introduce industry-friendly regulations, and even appoint a dedicated crypto “czar” to oversee the space.
Trump’s cabinet selections further fuel expectations that the administration will take a pro-crypto stance.
Appointments to key positions, including the Treasury Department, Commerce Department, and Securities and Exchange Commission (SEC), are seen as favorable to the cryptocurrency industry.
What to Know
Bitcoin, created in 2009 as a decentralized digital currency free from the control of banks or governments, has become the world’s most widely used cryptocurrency.
VCG/VCG via AP
Why Has Bitcoin Faced Criticism?
While it has faced criticism for its volatility and use by criminals, its acceptance has grown significantly. The currency has weathered multiple crashes and proven resilient, attracting both retail and institutional investors.
Since Trump’s victory in the 2024 election, Bitcoin’s price has skyrocketed. Two years ago, the cryptocurrency was trading around $20,000, but by the end of 2024, it reached over $100,000.
What People Are Saying
President-elect Donald Trump told cryptocurrency enthusiasts at a Bitcoin conference last summer: “You’re going to be very happy with me,” signaling his commitment to supporting the industry once in office.
What Happens Now
One of Trump’s key promises is to establish a special advisory council that will focus on creating clearer and more straightforward regulations for cryptocurrencies within his first 100 days in office. His pick to lead the SEC, Paul Atkins, has been a strong supporter of digital currencies, further reassuring industry players.
Trump has also vowed to ensure that the U.S. government stockpiles Bitcoin, similar to its gold reserves. A draft executive order circulating within the crypto community would establish a “Strategic Bitcoin Reserve,” and the Treasury Department would eventually hold at least $21 billion in Bitcoin.
What Will Happen to Ross Ulbricht?
In addition, Trump has promised to address the case of Ross Ulbricht, the founder of the Silk Road marketplace, who was sentenced to life in prison for running a site that facilitated illegal transactions using Bitcoin. Trump has reiterated his intention to commute Ulbricht’s sentence, a move that has earned support from many in the cryptocurrency community.
This article contains additional reporting from The Associated Press
