Bitcoin surged to an unprecedented $109,241 on Monday, reflecting optimism surrounding incoming US President Donald Trump, who has signaled plans to deregulate the cryptocurrency industry.
The cryptocurrency’s price later adjusted to $107,765 around 0740 GMT. This milestone marks a significant leap for Bitcoin, which crossed the $100,000 mark for the first time in early December 2024, following Trump’s election victory.
Driving Factors Behind the Surge
- Pro-Crypto Policy Signals
- Trump has embraced cryptocurrencies, a shift from his earlier stance calling them a “scam.”
- His nomination of Paul Atkins, a known cryptocurrency advocate, to lead the US Securities and Exchange Commission (SEC), has fueled optimism about deregulation.
- Introduction of $TRUMP Cryptocurrency
- Over the weekend, Trump launched his own cryptocurrency, $TRUMP, which quickly gained traction.
- The announcement led to a buying frenzy, with $TRUMP’s market valuation soaring into billions of dollars.
- Trump’s Public Support for Bitcoin
- Celebrating Bitcoin’s climb past $100,000, Trump posted on Truth Social:
“CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
- Celebrating Bitcoin’s climb past $100,000, Trump posted on Truth Social:
Bitcoin’s Evolution and Controversy
Bitcoin, created in 2008 by the pseudonymous Satoshi Nakamoto, was designed to bypass traditional financial systems through a decentralized transaction platform.
- Mining and Blockchain Technology:
Bitcoin is “mined” as a reward for solving complex computational problems, which also validate transactions on a tamper-proof blockchain. - Criticism and Concerns:
- Dark Web Usage: Bitcoin has faced criticism for its use in untraceable transactions linked to illegal activities.
- Money Laundering and Cybercrime: It has been accused of facilitating money laundering and ransomware attacks.
- Environmental Impact: Mining Bitcoin consumes significant energy, drawing scrutiny over its carbon footprint.
Context and Market Response
The cryptocurrency’s rally comes amid broader market optimism about Trump’s deregulation plans for digital assets. However, Bitcoin’s volatility remains a central concern, underscored by past crises like the collapse of FTX, a major exchange platform.
Despite these challenges, Bitcoin’s latest surge reflects its resilience and growing acceptance in mainstream finance.
Conclusion
Bitcoin’s rise to $109,000 cements its status as a leading asset in the digital economy. With Trump’s pro-crypto policies set to reshape the regulatory landscape, the cryptocurrency sector may experience unprecedented growth, although concerns about volatility and environmental impact remain at the forefront of discussions.
