Before Donald Trump took office, Bitcoin rose to a new peak, surpassing $109,000, and the cryptocurrency market also responded positively.
Reclaimed the $100,000 mark last weekend, Bitcoin (BTC) entered an uptrend but often failed to overcome short-term resistance. This afternoon (Hanoi time), as the US entered January 20, the world's largest cryptocurrency immediately skyrocketed. From around $102,000 per coin, BTC jumped to over $108,000, an increase of nearly 6% in less than an hour.
By 2 p.m., Bitcoin had hit a new record high of $109,115, about $847 higher than its previous peak. The cryptocurrency has since retreated slightly but is still above the $108,000 mark per unit, up about 3% from yesterday.
BTC sets new record as US clocks turn to Memorial Day Donald Trump President Trump will be inaugurated at 12:00 on January 20, ie 0:00 on January 21, Hanoi time. This leader has cherished the idea of establishing a national reserve of Bitcoin and many parties predict that he will sign an executive order immediately after the inauguration.
Matt Higgins, a venture capitalist, suggests that countries could start adopting strategic Bitcoin reserves by 2025. Higgins estimates that if 1 million BTC were transferred to national reserves, the circulating supply would drop by 6.6% and drive a price increase of more than 30%.
He previously added a new division dedicated to artificial intelligence and digital money in the White House. Former PayPal CEO David Sacks, also a close friend of the adviser Elon Musk, nominated to lead the new department. Trump also said he would nominate pro-cryptocurrency lawyer Paul Atkins to head the US Securities and Exchange Commission (SEC).
Another notable highlight for investors is the launch of memecoin by Donald Trump and his wife Melania. According to statistics on CoinMarketCap, TRUMP was priced at about $6 when it launched on January 18, after 12 hours it increased to $33. This cryptocurrency peaked at $75.35 yesterday, before cooling down to below $60 currently.
With a total project supply of one billion TRUMP tokens, of which 20% are in circulation, TRUMP's capitalization reached about $11.7 billion, ranking 18th in the market after two days of launch. At times, this memecoin surpassed many other famous coins such as Pepe, Near.
His wife’s MELANIA token also surged a staggering 24,000% to a record price of over $13. It is believed to have siphoned liquidity from TRUMP, which was the most traded digital asset on Binance over the weekend.
According to some observers, the frenzied trading of TRUMP and MELANIA represents a period of FOMO of the market. The above development also led to a BTC price correction this morning to below $100,000. Meanwhile, others like Jeff Dorman, CIO of the title NFT games Arca famously believes that TRUMP's debut is a green light for all possibilities.
For more than three years, the biggest risk in the cryptocurrency market has been regulatory. This has been completely erased, according to Dorman, when the US President himself is both an issuer and an investor.
“The TRUMP memecoin just signaled to every company, city, university, and individual that cryptocurrency can now be used as a new capital formation mechanism,” he added.
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