Bitcoin Reaches New Heights with Trump's Inauguration

On January 20, 2025, Bitcoin made headlines by reaching an unprecedented high of $109,071 shortly before Donald Trump was inaugurated as the 47th President of the United States. This significant increase in value reflects the ongoing interest and investment in cryptocurrencies.

In addition to Bitcoin's surge, Trump and his wife Melania launched their own set of ‘meme coins’, which further indicates their backing of digital currencies. The value of the 200 million $TRUMP coins that are currently in circulation peaked at approximately £12 billion, although it later experienced a decline.

Over the next three years, another 800 million coins are expected to be released. At its highest valuation, the entire supply of 1 billion coins could hypothetically be worth £60 billion.

Meanwhile, the US dollar experienced a drop, leading to an increase of more than 1 percent in the pound, which rose above $1.23. This fluctuation occurred after an announcement revealed that Trump would not impose new trade tariffs on his first day in office, despite his prior promises of tariffs on global imports.

The financial markets were notably quiet due to Martin Luther King Day, which coincided with the inauguration. During this time, the FTSE 100 index in London reached a record high of 8520.54.

Trump's re-election has been a catalyst for the cryptocurrency market, as he has declared intentions to serve as a 'crypto president'. His administration aims to bring cryptocurrencies into the mainstream with regulatory reforms.

Previously critical of cryptocurrencies, Trump became the first presidential candidate to accept digital asset donations for his campaign. Additionally, his family founded a cryptocurrency firm named World Liberty Financial, indicating a strategic shift toward embracing digital currencies.

Future plans include developing a national bitcoin stockpile and creating a crypto advisory council. However, experts caution that these plans may change, which could lead to volatility in Bitcoin and other cryptocurrencies.

Investment experts are already noting the potential risk, as any delays in Trump's proposed policies could trigger significant sell-offs in the cryptocurrency market, notorious for its volatility.

After launching on Friday, Trump’s meme coin, $TRUMP, shot up from less than £8 to highs of £60.70, presenting a market cap of £12 billion before declining. Melania Trump also introduced a coin named $MELANIA, which increased in value, achieving a market cap exceeding £1 billion.

The inauguration prompted a wave of buying among crypto investors. Analysts suggest that market attention will now focus on how Trump executes his supportive policies for cryptocurrency.

Experts like Russ Mould and Kathleen Brooks have emphasized that investors remain cautious about the volatility associated with crypto markets, suggesting that clear and concrete policies will be essential to sustaining investor confidence.

As cryptocurrencies are poised for even more scrutiny moving forward, many anticipate increased regulation and clarity within the financial sector which could lead to broader adoption of these digital assets.

Bitcoin, Trump, cryptocurrency