Bitcoin reached an all-time high of over $109,000 on Monday as Donald Trump, who has indicated plans to ease regulations on the cryptocurrency sector, prepared for his inauguration as US president.
The price of Bitcoin peaked at $109,241 ahead of the ceremony before slightly retreating to $107,765 around 0740 GMT.
The cryptocurrency has seen a significant surge since Trump’s November election victory, crossing the $100,000 threshold for the first time in early December.
This rally followed Trump’s nomination of cryptocurrency supporter Paul Atkins to head the US securities regulator, fueling optimism that the new president would push for deregulation in the sector.
Though Trump had previously referred to cryptocurrencies as a “scam,” he shifted his stance and became a prominent supporter during his election campaign.
Over the weekend, he launched his own cryptocurrency, dubbed $TRUMP, sparking a wave of buying that pushed its market value to several billion dollars.
When bitcoin reached the landmark $100,000 level, Trump wrote on his Truth Social platform: “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
Cryptocurrencies have garnered significant attention since their inception, driven by their extreme price volatility and the collapse of several major players in the industry, most notably the FTX exchange platform.
Bitcoin, introduced in 2008 by an individual or group operating under the pseudonym Satoshi Nakamoto, was envisioned as a means to bypass traditional financial institutions by creating a decentralized platform for transactions.
The digital currency is “mined” as a reward for powerful computers that solve intricate problems to validate transactions on an immutable ledger known as the blockchain.
Bitcoin has faced criticism for being the preferred currency for untraceable transactions on the so-called dark web, a hidden part of the internet often associated with illegal activities.
The asset has been repeatedly criticized for facilitating money laundering and enabling extortion through ransomware attacks.
Furthermore, its environmental impact has drawn scrutiny, as the process of mining cryptocurrencies demands vast amounts of energy.