Bitcoin price surpasses $100,000 as Trump plans to support cryptocurrency regulations
Bitcoin’s value surged past $100,000, a significant milestone driven by positive sentiments in the cryptocurrency industry, attributed to the potential actions of upcoming U.S. President Donald Trump. Despite his initial doubts about digital currencies, Trump has now embraced the sector, with promises to position the United States as a global leader in crypto innovation. This shift in stance has raised hopes for a more crypto-friendly regulatory environment, as Trump pledges to introduce favorable regulations, create a U.S. strategic bitcoin reserve, and appoint a crypto leader to oversee these initiatives.
The surge in Bitcoin’s price to over $100,000 reflects the market’s optimism about Trump’s pro-crypto agenda. His administration is anticipated to bring about a transformative phase for cryptocurrency regulation and adoption, especially following what many in the industry perceived as restrictive policies during the Biden administration.
On Friday, Bitcoin witnessed a 5% increase, reaching $104,000, after briefly dropping to $90,000 earlier in the week. This renewed enthusiasm is attributed to expectations of Trump’s positive stance on cryptocurrencies. It is noteworthy that just two years ago, Bitcoin was trading at $20,000, underscoring its exponential growth over a short period.
Trump’s proposed crypto agenda includes the establishment of a “Strategic Bitcoin Reserve” as part of the national assets, with a proposed directive for the Treasury Department to hold a minimum of $21 billion in Bitcoin to diversify federal reserves. While critics raise concerns about Bitcoin’s volatility, advocates believe it will bring legitimacy to the digital currency ecosystem.
As a part of his agenda, Trump plans to set up an advisory council within his first 100 days to formulate clear industry regulations. Key appointments include David Sacks as the crypto “czar” and Bo Hines to lead the Presidential Council of Advisers for Digital Assets. Notably, Trump’s pick for the Securities and Exchange Commission (SEC), Paul Atkins, has a long-standing advocacy for digital currencies. Wealthy crypto supporters, who felt targeted during the Biden administration, heavily backed Trump’s campaign in hopes of a more favorable regulatory environment. The advocacy group Coin Center’s Peter Van Valkenburgh predicted a shift in the SEC’s approach under Trump’s administration, contrasting it with the aggressive oversight seen during Gary Gensler’s tenure.
The rise of Bitcoin above $100,000 signifies a turning point for the cryptocurrency landscape, spurred by the anticipated policies under the new U.S. leadership. With Trump’s promises to support crypto innovation and industry growth, there is cautious optimism about the future trajectory of digital assets in the country.
