Bitcoin’s price surges over $109,000 as market anticipates Trump’s impact
Bitcoin has broken a record by surpassing the $109,000 mark ahead of Donald Trump’s inauguration as the US president. The surge in value continued until it reached a peak of $109,241, settling at $107,765 shortly after. Interestingly, Bitcoin experienced a significant increase after Trump’s electoral victory, hitting a milestone of $100,000 in early December.
Trump’s appointment of Paul Atkins, a known advocate for cryptocurrencies, to lead the US securities regulator fueled optimism among investors that the new administration would deregulate the cryptocurrency sector. Despite previously referring to cryptocurrencies as a “scam,” Trump shifted his perspective during his election campaign and showed strong support for digital currencies.
Over the weekend, Trump unveiled his own cryptocurrency, aptly named $TRUMP, which triggered a frenzy of buying and pushed its market capitalization to several billion dollars. Celebrating Bitcoin reaching the $100,000 threshold, Trump took to his Truth Social platform to congratulate Bitcoin enthusiasts and pledged to “Make America Great Again” as part of his campaign slogan.
Since its inception, cryptocurrencies have been a subject of interest due to their volatility, with the collapse of industry leaders like the FTX exchange platform making headlines. Bitcoin, introduced in 2008 by an anonymous individual or group under the pseudonym Satoshi Nakamoto, aimed to challenge traditional financial systems by creating a decentralized transaction platform.
The creation of Bitcoin involves a mining process where powerful computers solve complex problems to validate transactions on a tamper-proof ledger known as the blockchain. Despite its advantages, Bitcoin has faced scrutiny for being used for untraceable payments on the dark web—a hidden part of the internet associated with illegal activities.
Critics have also raised concerns about Bitcoin’s role in facilitating money laundering and ransomware attacks. Additionally, the immense energy consumption required for mining cryptocurrencies has led to debates regarding its carbon footprint.
As Bitcoin’s value continues to soar, the future of cryptocurrencies remains uncertain. Trump’s gradual embrace of digital currency, reflected in his support for deregulation and creation of his cryptocurrency, highlights the evolving landscape of digital finance. The intersection of politics, finance, and technology in the cryptocurrency sector underscores the need for vigilance and regulatory frameworks to ensure the responsible and sustainable use of digital assets.
