Bitcoin reached a hit a record high above $109,000 on Monday, as President-elect Donald Trump, known for his favorable position on cryptocurrencies, prepared for his inauguration.
Bitcoin goes up to an all-time high of $109,241 before settling back to $107,765. This surge comes in the wake of Trump’s victory in November.
It came after he nominated cryptocurrency advocate Paul Atkins as head of the US Securities and Exchange Commission (SEC), reinforcing optimism the new president will deregulate the sector.
Bitcoin first broke the $100,000 barrier in early December, further bolstering investor confidence. Although Trump had previously dismissed cryptocurrencies as a “scam,” he shifted his position during the presidential campaign, becoming a vocal supporter.
Over the weekend, Trump introduced his cryptocurrency, aptly named $TRUMP, which saw a frenzy of buying activity, quickly pushing its market capitalization into the billions.
First Lady Melania Trump also joined the trend, launching her cryptocurrency on Sunday, which was trading at approximately $12.03 with a market value of $1.9 billion, according to Reuters.
After Bitcoin hit $100,000, Trump took to his Truth Social platform, celebrating the milestone with the post: “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
Cryptocurrencies, often known for their volatility, have been at the center of attention since their inception. Despite their promise of decentralization and freedom from traditional financial institutions, they have faced significant analysis.
Bitcoin, created in 2008 by an anonymous individual or group under the pseudonym Satoshi Nakamoto, operates through blockchain technology, a tamper-proof ledger where powerful computers validate transactions.
However, Bitcoin has faced criticism for its use in illicit activities, including untraceable transactions on the dark web, facilitating money laundering, and enabling ransomware attacks.
Additionally, the environmental impact of Bitcoin mining, which requires massive energy consumption, remains a growing concern.