Bitcoin hits record high above $109,000 amid Trump’s inauguration

Bitcoin surged to an all-time high of $109,241 on Monday as Donald Trump, who has expressed plans to deregulate the cryptocurrency sector, prepares for his inauguration as U.S. president.

The cryptocurrency later dropped slightly to $107,765 by 7:40 GMT.

The world’s largest cryptocurrency has seen a remarkable rise since Trump’s victory in the November presidential election, surpassing $100,000 for the first time in early December. The surge gained momentum after Trump nominated cryptocurrency advocate Paul Atkins to lead the U.S. Securities and Exchange Commission (SEC), heightening expectations for deregulation in the sector.

Though Trump once referred to cryptocurrencies as a “scam,” he changed his stance during his election campaign, becoming a vocal supporter. Over the weekend, Trump launched his own cryptocurrency, aptly named $TRUMP, which saw feverish demand and a market capitalisation reaching billions of dollars.

Trump celebrated Bitcoin’s $100,000 milestone on his Truth Social platform, stating: “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”

A Brief History of Bitcoin

Bitcoin, introduced in 2008 by the pseudonymous Satoshi Nakamoto, was envisioned as a decentralized digital currency to eliminate reliance on traditional financial institutions. Its blockchain-based system ensures secure and immutable transactions, with new Bitcoin created as rewards for miners who solve complex computational problems.

Despite its innovative premise, Bitcoin has faced criticism over its role in facilitating illegal activities on the dark web, money laundering, and ransomware operations. Additionally, concerns over its high energy consumption for mining activities have led to scrutiny of its environmental impact.

Cryptocurrency Under the Trump Administration

Cryptocurrencies have remained a contentious issue, from their volatility to the collapse of platforms like FTX. Trump’s apparent endorsement of Bitcoin and other cryptocurrencies signals potential regulatory shifts under his administration.

As the market adjusts to Trump’s leadership and pro-cryptocurrency policies, the future of Bitcoin and its influence on the global financial system remains uncertain.