Bitcoin’s price hit a record high of over $106,000, marking a 50% surge since Trump’s election win. The cryptocurrency briefly touched $106,000 before retreating to $104,500 during Monday’s Asian trading session.
Trump’s Crypto Policies Boost Investor Confidence
Trump’s administration is seen as more supportive of cryptocurrencies than Biden’s. On Thursday, Trump announced plans for a national Bitcoin reserve. This move, similar to the U.S. strategic oil reserve, has sparked investor optimism.
Peter McGuire from XM.com described the rally as driven by FOMO—fear of missing out. “Investors expect Bitcoin to hit $120,000 this year and $150,000 by mid-2025,” McGuire told the BBC.
New Appointments Signal Crypto-Friendly Shift
Trump appointed David Sacks, a former PayPal executive, as his AI and cryptocurrency advisor. Sacks, a close ally of Elon Musk, signals Trump’s focus on advancing U.S. cryptocurrency policy.
Trump plans to nominate pro-crypto attorney Paul Atkins as head of the Securities and Exchange Commission (SEC). This move signals a shift towards more favorable crypto regulations. Current SEC chair Gary Gensler announced he will step down on January 20, the day of Trump’s inauguration.
Gensler’s departure follows criticism from Trump, who vowed to remove him on “day one” of his presidency. Gensler’s actions against crypto firms had faced backlash from industry leaders. “I thank President Biden for trusting me with this role,” Gensler wrote on X while announcing his resignation.
Investors expect Bitcoin’s price to rise further as Trump’s policies take effect. Many see upcoming regulatory changes and key appointments as major drivers of future Bitcoin growth.