Washington. Bitcoin’s price skyrocketed to over $109,000 early Monday, just hours before President-elect Donald Trump’s inauguration, as the cryptocurrency industry anticipates swift policy actions upon his return to the White House.
Trump, once a vocal critic of bitcoin, has embraced digital currencies with fervor. During his campaign, he promised to bolster the US’ position as a global crypto leader by enacting pro-crypto regulations, creating a federal bitcoin stockpile, and appointing a crypto “czar.”
“You’re going to be very happy with me,” Trump told a cheering crowd at a bitcoin conference last summer, signaling his commitment to the cryptocurrency world.
Bitcoin, the world’s leading cryptocurrency, has experienced dramatic price fluctuations since its creation in 2009. Despite criticisms over its volatility and links to criminal activity, the digital currency has defied skeptics and surged in value. Bitcoin has risen dramatically from $20,000 two years ago to over $100,000 last month, with its latest spike attributed to Trump’s pro-crypto stance.
Trump’s Crypto Agenda
Trump has pledged to establish a “Crypto Council” within his first 100 days to draft clear and industry-friendly regulations. He has already named venture capitalist David Sacks as the administration’s crypto “czar” and appointed Bo Hines as executive director of the “Presidential Council of Advisers for Digital Assets.”
Advocates anticipate a shift in tone at regulatory bodies like the SEC, where outgoing Chair Gary Gensler was criticized for his aggressive enforcement of crypto regulations. Trump’s pick to lead the SEC, Paul Atkins, is a known cryptocurrency advocate.
Trump has also vowed to create a “Strategic Bitcoin Reserve” as a permanent national asset, administered by the Treasury Department. This move would involve the U.S. government retaining, rather than auctioning, seized bitcoin, potentially holding reserves worth at least $21 billion.
Supporters argue this policy would help diversify government holdings and normalize bitcoin as a legitimate financial asset. Critics, however, caution against the inherent volatility of cryptocurrencies as reserve assets.
Crypto advocates celebrated Trump’s inauguration with a sold-out “Crypto Ball” over the weekend, underscoring their optimism for his presidency. Many in the industry believe his administration will usher in regulatory clarity and encourage innovation, contrasting with the perceived hostility of the previous administration.
With bitcoin prices soaring and Trump’s pro-crypto agenda in motion, his presidency could mark a pivotal moment for the cryptocurrency industry.
Tags:
Keywords:
