Bitcoin Soars Past $109,000 to Hit New All-Time High Ahead of Trump's Inauguration

Bitcoin's sharp rise is linked to Trump's recent election victory, which has fueled hopes of regulatory leniency

Just hours before Donald Trump's inauguration as the 47th President of the United States, Bitcoin surged to a record high, reflecting growing investor optimism. The leading cryptocurrency soared by 9%, reaching an all-time high of $108,899 on Monday afternoon, according to CoinMarketCap data.

Bitcoin

This significant rebound follows a dip below $100,000 earlier the same day when Melania Trump launched her meme coin, $Melania. Despite initial losses, Bitcoin's performance quickly reversed, driving its market cap to a historic $2.14 trillion—a remarkable 176% increase compared to $774 billion during the same period last year.

Trump's Win Boosts Crypto Market Confidence

Bitcoin's sharp rise is linked to Trump's recent election victory, which has fueled hopes of regulatory leniency and potential government integration of cryptocurrencies. Since early November, Bitcoin's value has grown steadily, climbing from $75,000 to its current record-breaking level.

Trump's presidency is expected to bring sweeping changes to crypto policies. Reports suggest the incoming administration plans to make cryptocurrency a national priority, a move that has energized the market. Speculation about an executive order creating a crypto advisory council has further boosted investor confidence. This council would reportedly advocate for industry-friendly policies, marking a sharp departure from the regulatory crackdowns seen during President Joe Biden's term.

Melania's Meme Coin Sparks Market Volatility

The launch of $Melania, a meme coin created by Melania Trump, also grabbed headlines. Debuting on Monday morning, the coin quickly gained popularity, amassing a $2 billion market cap. The announcement initially caused a brief dip in Bitcoin's value, but the market recovered swiftly.

Meanwhile, Donald Trump himself launched his meme coin, $TRUMP, which reached a market cap of nearly $15 billion by Sunday. The coin's value has fluctuated, peaking at over $75 before stabilizing around $53.

Crypto's Dominance and Future Outlook

Bitcoin remains the dominant force in the cryptocurrency market, accounting for 57% of the total market cap of $3.37 trillion. Ethereum follows with a 10.9% share.

As Trump takes office, the crypto market is brimming with anticipation. Analysts believe his policies could pave the way for integrating Bitcoin into the U.S. strategic reserve, potentially revolutionizing the industry. Investors are also optimistic that Trump's administration will address the challenges posed by previous investigations into crypto-related fraud.

The potential policy shift could usher in a new era for cryptocurrencies in the U.S., positioning Bitcoin for further growth. With its recent surge, the crypto king appears poised to capitalize on a wave of investor optimism sparked by Trump's pro-crypto stance.

As the world watches Trump's inauguration, all eyes are on Bitcoin and the broader crypto market. The combination of policy expectations and increasing adoption signals a promising future for digital currencies in the U.S.

This article was first published on January 20, 2025
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