Bitcoin reached a record high of over $109,000 on Monday as Donald Trump, who has indicated plans to relax regulations on the cryptocurrency sector, prepared for his inauguration as US president.
The price of Bitcoin peaked at $109,241 before slightly retreating to $107,765 around 0740 GMT.
The cryptocurrency has seen a significant rise since Trump’s November election victory, surpassing the $100,000 mark for the first time in early December.
This surge followed Trump’s appointment of cryptocurrency advocate Paul Atkins to lead the US securities regulator, sparking optimism that the new president would promote deregulation in the sector.
Although Trump had previously referred to cryptocurrencies as a “scam,” he changed his stance and became a vocal supporter during his election campaign.
Over the weekend, he launched his own cryptocurrency, $TRUMP, which sparked a buying frenzy that pushed its market value to several billion dollars.
When Bitcoin reached the $100,000 milestone, Trump posted 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 under the pseudonym Satoshi Nakamoto, was designed to bypass traditional financial institutions by creating a decentralised platform for transactions.
The digital currency is “mined” as a reward for powerful computers solving complex 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 linked to illegal activities.
The asset has been repeatedly criticised for facilitating money laundering and enabling extortion through ransomware attacks.
Moreover, its environmental impact has come under scrutiny, as the process of mining cryptocurrencies requires vast amounts of energy.
