Bitcoin’s price soared past $100,000 on Friday, driven by optimism in the cryptocurrency sector over potential early action by Donald Trump, who become U.S. president next week.
Trump, once a vocal skeptic of digital currencies, has embraced the sector, pledging to establish the United States as a global leader in cryptocurrency innovation.
His campaign promises include enacting crypto-friendly regulations, creating a U.S. strategic bitcoin reserve and appointing a crypto “czar” to lead these efforts.
Mark Humphrey/AP Photo
Why It Matters
Bitcoin, created in 2009, has evolved from a niche asset to a significant financial instrument. Its rise to $100,000 highlights the market’s anticipation of favorable policies under Trump, who has surrounded himself with crypto advocates in key regulatory roles.
This shift could mark a transformative period for cryptocurrency regulation and adoption in the U.S., particularly after what many industry players viewed as restrictive policies under the Biden administration.
What to Know
Bitcoin surged by approximately 5 percent on Friday, reaching $104,000, according to CoinDesk. The cryptocurrency had briefly dipped to $90,000 earlier in the week but rebounded amid growing enthusiasm for Trump’s pro-crypto stance. Two years ago, bitcoin traded at just $20,000, underscoring its dramatic rise.
Trump’s Crypto Agenda
Trump has pledged to establish a “Strategic Bitcoin Reserve” as a national asset. Advocates have proposed an executive order that would direct the Treasury Department to hold at least $21 billion in bitcoin, diversifying federal reserves.
Critics argue that bitcoin’s volatility makes it unsuitable as a reserve, but proponents believe it will legitimize the cryptocurrency.
New Regulatory Council
Trump plans to create a special advisory council within his first 100 days to establish clear regulations for the industry. David Sacks, a venture capitalist, has been named crypto “czar,” while Bo Hines will lead the Presidential Council of Advisers for Digital Assets. Trump’s Securities and Exchange Commission (SEC) pick, Paul Atkins, is a longtime advocate for digital currencies.
Wealthy crypto advocates, who felt targeted by Biden-era enforcement, heavily supported Trump’s campaign. Peter Van Valkenburgh of advocacy group Coin Center predicted a “tone change” at the SEC, contrasting with outgoing Chairman Gary Gensler’s aggressive oversight.
Fernando Gutierrez-Juarez/AP Photo
What People Are Saying
Trump assured bitcoin enthusiasts last year, signaling a regulatory shift: “You’re going to be very happy with me.”
Zack Shapiro of the Bitcoin Policy Institute said: “Creating a strategic bitcoin reserve will legitimize bitcoin for skeptics.”
What Happens Next
As Trump prepares to take office, crypto advocates anticipate swift action on his promises, including the establishment of a strategic bitcoin reserve and the creation of pro-industry regulations.
These developments could further fuel bitcoin’s rise and shape the future of cryptocurrency in the U.S.
This article includes reporting from The Associated Press.
