Bitcoin, the world’s largest cryptocurrency, has reached an all-time high, briefly surpassing $106,000 (£83,890) before settling around $105,000 on Monday. The price surge follows a rally fueled by optimism over the incoming Trump administration’s favorable stance on cryptocurrencies.
The Trump administration, set to take office on January 20, has signaled a markedly friendlier approach to cryptocurrencies than its predecessor. President-elect Trump has floated the idea of creating a national Bitcoin reserve, akin to the U.S. Strategic Petroleum Reserve, to strengthen the country's position in the global digital economy.
Adding to the bullish sentiment, Trump recently named Silicon Valley entrepreneur David Sacks as his cryptocurrency and artificial intelligence (AI) advisor. Sacks, a former PayPal executive with ties to billionaire Elon Musk, is expected to drive innovation in the sector.
Trump also plans to nominate pro-crypto attorney Paul Atkins as the next chair of the Securities and Exchange Commission (SEC), replacing outgoing chairman Gary Gensler, who faced criticism for his tough stance on cryptocurrency firms. Gensler announced his resignation, effective January 20, stating, “The SEC has met our mission and enforced the law without fear or favor.”
The cryptocurrency’s meteoric rise is being fueled by a mix of institutional buying, retail enthusiasm, and speculation about the incoming administration's crypto-friendly policies.
Trump’s proposed pro-cryptocurrency appointments could significantly reshape the regulatory landscape. The departure of SEC Chairman Gensler, known for his legal challenges against major cryptocurrency firms, is seen as a potential catalyst for reduced regulatory pressure on the sector.
With Trump’s inauguration less than a month away, the cryptocurrency market is watching closely to see how his administration’s policies could reshape the landscape for Bitcoin and the broader digital asset ecosystem. As the rally gathers momentum, Bitcoin's new record highs highlight the shifting dynamics of the global financial system.
