On Monday, the price of the digital currency Bitcoin set a record high, exceeding $109,000, as Donald Trump – who indicated plans to liberalize the cryptocurrency sector – prepared to be sworn in as President of the United States.
Before Trump’s inauguration, the price of Bitcoin rose to its highest level ever at $109,421, before falling to the level of $108,209 in the latest trading.
Since Trump won the elections last November 5, the value of the cryptocurrency has increased, with it exceeding the threshold of $100,000 for the first time last December.
Other cryptocurrencies, such as Ether and XPR, rose as traders awaited Trump assuming the US presidency again.
Trump’s position changed
This came shortly after Trump announced that, upon assuming office, he would appoint Republican lawyer Paul Atkins, a supporter of the development of digital currencies, as head of the Financial Markets Regulatory Authority.
During his first term, Trump described digital currencies as a scam, but his position completely changed in this regard, and he even launched his own digital currency, pledging to make the United States “the global capital of Bitcoin and digital currencies.”
Bitcoin, which was created in 2008 and was initially intended to evade the control of traditional financial institutions, is based on “block chain” technology, which serves as a virtual, tamper-proof record that preserves the trace of all concluded transactions.
Regulatory bodies seek to close the legal loopholes surrounding these digital assets, which have often been the subject of controversy and are still considered a means used to launder money or defraud individuals.
Trump coins
In a related context, Bloomberg reported that Trump’s new currencies surprised cryptocurrency markets by attracting investment flows from other currencies, and faced sharp criticism even from some sector executives. However, investors eventually embraced the idea that Trump’s move would give him additional incentive to adopt friendly policies. For cryptocurrencies.
Trump became an ardent supporter of the digital asset industry during the election campaign, having once called Bitcoin a scam and vowing to make the United States the cryptocurrency capital of the world through policies that include creating a strategic stockpile of Bitcoin.
Meme coin madness
Bloomberg quoted Hashkey Global’s managing director, Ben El-Baz, as saying that the tokens launched by Trump and his team have provided a boost to Bitcoin, as retail traders look to his administration to “prioritize and reaffirm his commitment to the crypto industry.”
Meme currencies are a type of cryptocurrency that is affected by the rise and fall of social media signals, and they have high volatility.
Trump’s currency briefly shook the digital asset market this morning in Singapore, draining flows from Bitcoin and lower currencies, sparking criticism from sector executives, as well as a rebuke from government observers.
