Bitcoin reaches new heights on the eve of Donald Trump’s inauguration. The future president, pro-cryptos, promises to make it a priority. But this surge raises questions about the stability and regulation of this highly speculative market. Decryption.
A few hours before the inauguration of Donald Trump, the price of Bitcoin reached a new historic record by exceeding the symbolic mark of 109,000 dollars. This surge comes as the future American president shows strong support for cryptocurrencies, promising to relax their regulations.
Trump, a strong ally for cryptocurrencies
After calling them a “scam” during his first term, Donald Trump made a 180-degree turn on the issue of digital currencies. During his campaign, partly financed by this sector, he loudly proclaimed his desire to make the United States “the world capital of Bitcoin”. A change of direction which delights the players in this controversial market, in search of credibility.
“Trump”, a new trendy cryptocurrency
To mark his commitment, Donald Trump even launched his own digital currency this weekend, “Trump”. Sort of “same corner”playing on its popularity, this cryptocurrency experienced dazzling success as soon as it was put into circulation:
- 200 million tokens placed on the market
- A price multiplied by 10 in a few hours, going from 7 to 75 dollars
- Melania Trump also launched her “Melania coin”
Towards a strategic reserve of bitcoins?
According to sources familiar with the matter, the president-elect plans to issue a decree making cryptocurrencies a political priority. He would even consider creating a national strategic bitcoin reserve, encompassing assets currently held by the government. An announcement welcomed by Donald Trump himself on his Truth Social network:
Congratulations to bitcoin fans!!! 100,000 dollars!!! THERE’S NO MATTER!!! Together, we will make America great again.
Bitcoin, in search of respectability
Born 16 years ago from a libertarian dream, Bitcoin today seeks to gain legitimacy. Despite its adoption as legal tender in certain countries like El Salvador, and its acceptance by companies like Tesla (before backpedaling), the crypto star is struggling to shed its sulphurous reputation.
-Long associated with illicit activities on the Darknet, due to the anonymity of transactions, Bitcoin is now attracting institutional investors. In the United States, new financial products backed by Bitcoin and Ether have raised billions of dollars in recent months, contributing to the surge in prices.
Towards a speculative bubble?
But the extreme volatility that characterizes the cryptocurrency market worries regulators. The capitalization of Bitcoin, the world’s leading cryptocurrency, now exceeds $1,000 billion, more than most large companies in the S&P500. A level considered disconnected from fundamentals by many economists.
The support shown by influential figures like Elon Musk or Donald Trump could accelerate the general public adoption of cryptocurrencies. But it also raises fears of the emergence of a speculative bubble, with the risk of a devastating crash in the event of a market downturn. Financial authorities regularly warn savers against the dangers of investing in cryptos.
Between hopes and risks, what future for Bitcoin?
The announced advent of Donald Trump at the White House therefore opens a new era for Bitcoin and cryptocurrencies. Its favorable positioning could accelerate their development and stimulate innovation in this booming sector.
But uncertainties remain numerous, between the still unclear regulatory framework, risks of price manipulation and threats to overall financial stability. Donald Trump’s bet to make the United States a world leader in cryptocurrencies is therefore far from won. The future will tell us whether Bitcoin will succeed in establishing itself as a credible currency or will remain a speculative asset.
