Bitcoin Reaches Record High as Trump Assumes Presidency

On January 20, 2025, Bitcoin experienced a remarkable surge, reaching an all-time high of $109,071 just hours before Donald Trump's inauguration as the 47th President of the United States.

Additionally, Trump and his wife Melania introduced their own ‘meme coins’, showcasing their continued support for the growing digital currency market. The value of the two hundred million $TRUMP coins in circulation skyrocketed to approximately £12 billion before experiencing a slight decline.

It is important to note that there are still eight hundred million coins yet to be issued over the next three years. At its peak, the total worth of the potential one billion coins was estimated at £60 billion.

In the broader financial landscape, the dollar took a significant hit, leading to a rise in the pound by more than one percent, pushing it above $1.23. This change followed an announcement that Trump would refrain from imposing new trade tariffs on his first day in office, despite earlier plans to implement various tariffs on global imports.

As Trump prepared for his presidency, markets reacted with a buying frenzy. This notable rise in Bitcoin's value has been partly attributed to Trump's promise to be a 'crypto president'. Initially critical of cryptocurrencies, he has shifted his stance, becoming the first presidential candidate to accept digital assets as donations for his campaign. Furthermore, his family established a cryptocurrency firm named World Liberty Financial during the election race.

Trump has outlined intentions to build a strategic stockpile of Bitcoin in the U.S. and to establish a crypto advisory council to facilitate the integration of digital currencies into the financial mainstream. However, experts have pointed out that these plans are not yet finalized; any hesitations could lead to significant declines in Bitcoin and other cryptocurrencies.

Investment experts are noting that while expectations for clearer regulations about cryptocurrency trading are rising, the market remains extraordinarily volatile. Russ Mould, investment director at AJ Bell, remarked that the actual implementation details of Trump’s policies could heavily influence market outcomes.

Meanwhile, Kathleen Brooks, research director at online broker XTB, cautioned that any delays in policy could ignite a sharp sell-off, reflecting the unpredictable nature of the cryptocurrency market.

Following the launch of the $TRUMP coin, it saw an explosive increase in value, jumping from under £8 on the preceding Saturday to a high of £60.70 by inauguration day, briefly securing a market value around £12 billion.

The First Lady also entered the market with her own coin, $MELANIA, which experienced a rise in value reaching over £1 billion in market cap.

Analysts noted that the crypto market's reaction to Trump's inauguration indicates a strong interest in how his administration will approach pro-crypto policies, signaling potential new directions for digital currencies.

All these developments suggest a significant shift towards the mainstream acceptance of cryptocurrencies, which only a few years ago seemed far-fetched. Susannah Streeter, a market analyst, commented on the evolving environment, mentioning that clearer rules regarding cryptocurrency trading and transactions are becoming increasingly plausible.

Despite the excitement surrounding these developments, it remains crucial for investors to exercise caution given the history of cryptocurrency prices fluctuating wildly after rapid increases.

Bitcoin, Trump, Crypto