Bitcoin jumped above $109,000 early Monday, hours before President-elect Donald Trump’s inauguration, as the cryptocurrency industry anticipates the new administration’s major moves.
On Friday, Bitcoin surged 5% and jumped $9,000 early Monday morning, according to virtual media firm CoinDesk.
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 had called Bitcoin a “scam,” but has since embraced it with unexpected enthusiasm.
During his election campaign, he promised to make the United States the “crypto capital of the world,” outlining plans to create a national crypto reserve, introduce industry-friendly cryptocurrencies, and even appoint a committed crypto “czar” to oversee the space.
Trump’s cabinet chooses more to fuel expectations that the leadership 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.
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.
Although it has been criticized for its volatility and its use by criminals, its acceptance has increased significantly. The coin has withstood several declines and has proven to be resilient, attracting retail and institutional investors.
Since Trump’s victory in the 2024 election, the value of Bitcoin has skyrocketed. Two years ago, the cryptocurrency was trading around $20,000, but by the end of 2024 it would reach $100,000.
President-elect Donald Trump told cryptocurrency enthusiasts at a Bitcoin convention last summer: “You’ll be very pleased with me,” signaling his commitment to supporting the industry once he takes office.
One of Trump’s key promises is to create a special advisory board that will be tasked with creating clearer and simpler regulations for cryptocurrencies in his first hundred days in office. His pick to head the SEC, Paul Atkins, has been a strong supporter of virtual currencies. , most 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.
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
Shamim Chowdhury is a journalist for Newsweek in London, UK. It focuses on primary foreign news, specifically conflicts, refugees and natural disasters. He has covered the war in Syria from the front lines, the war in Ukraine, the Rohingya refugee crisis, and much more. She joined Newsweek in 2024. She holds a bachelor’s degree from Queen Mary, University of London and a master’s degree from Birkbeck, University of London. Shamim can be reached by sending an email to s. chowdhury@newsweek. com. He is fluent in English, Sylvati and Bengali and fluent in Urdu and Hindi.