Bitcoin's price surged past $100,000 once again, driven by anticipation within the cryptocurrency industry of forthcoming initiatives under the new Trump administration. Formerly critical of bitcoin, Trump has now embraced digital currencies, aiming to position the U.S. as the global 'crypto capital.' His proposed measures include establishing a U.S. crypto stockpile, implementing industry-friendly regulations, and appointing a crypto advisor.
Bitcoin, introduced in 2009 as decentralized electronic cash, has transitioned from the fringes to the mainstream, despite criticisms of its volatility and illicit use. The industry's support for Trump, who defeated the Biden administration, has contributed to bitcoin's recent price surge.
Trump's cabinet and regulatory appointees are notably pro-crypto, with plans for a specialized advisory council to guide crypto regulations within the initial 100 days of his presidency. The administration has named a crypto 'czar' and an executive director for digital assets advisory.
Furthermore, Trump pledged to establish a 'Strategic Bitcoin Reserve,' akin to the gold reserves, to hold seized bitcoins and diversify government assets. This move aims to legitimize bitcoin and hedge against financial risks, although critics cite bitcoin's volatility as a concern.
Additionally, Trump vowed to commute the life sentence of Ross Ulbricht, the Silk Road founder, a decision that resonated with crypto advocates and Libertarian activists.
Overall, the cryptocurrency market is optimistic about the Trump administration's pro-crypto stance, with expectations of a shift in regulatory tone and increased institutional acceptance of digital assets.
