Bitcoin has reached a new all-time high, surpassing $106,000. This rise marks a 50% increase since Donald Trump’s election victory on 5 November. The world’s largest cryptocurrency briefly hit $106,000 before retreating to $104,500 during Monday’s Asian trading session.
Trump’s Policies Fuel Bitcoin’s Rise
The incoming Trump administration is seen as more supportive of cryptocurrencies than the Biden administration. On Thursday, Trump announced plans to create a national Bitcoin reserve, similar to the country’s strategic oil reserve. This announcement has fueled market speculation and increased investor interest in Bitcoin.
Peter McGuire from trading platform XM.com described the rally as “parabolic,” driven by FOMO—fear of missing out. “Many investors see $120,000 as achievable this year and $150,000 by mid-2025,” McGuire told the BBC.
Key Appointments and Regulatory Changes
Earlier this month, Trump appointed David Sacks as his AI and cryptocurrency advisor. Sacks, a former PayPal executive, is a close ally of Trump adviser and billionaire Elon Musk. This appointment signals Trump’s strong focus on advancing the U.S. cryptocurrency agenda.
Trump also plans to nominate Paul Atkins, a pro-cryptocurrency attorney, as head of the U.S. Securities and Exchange Commission (SEC). Atkins is expected to lead a more crypto-friendly approach at the agency. Current SEC chair Gary Gensler announced he would step down on 20 January, the day of Trump’s inauguration.
Gensler’s departure follows months of criticism from Trump, who pledged to remove him on “day one” of his presidency. Gensler had pursued legal action against several cryptocurrency firms, a move that drew sharp criticism from industry leaders. “I thank President Biden for entrusting me with this role,” Gensler wrote on the social media platform X, as he announced his resignation.
Investors and analysts now anticipate further Bitcoin gains as Trump’s policies take effect. Market confidence is growing as expectations of more favorable cryptocurrency regulations rise. Observers are closely watching the upcoming appointments and regulatory shifts as potential drivers of future Bitcoin price movements.
