Crypto may have just got one of its most powerful backers in the newly appointed president.
On the day of Donald Trump’s inauguration, the price of Bitcoin hit an all-time high of more than $109,000, as investors waited to see how he would boost the industry – although they were left disappointed when he did not mention it at all.
President Trump and his first lady Melania also just launched their own cryptocurrencies, $TRUMP and $MELANIA, signalling their enthusiasm.
At one point on Monday, the $TRUMP currency made up 90% of the president’s net worth, according to Axios, although the coin’s value has now plummeted.
His first day in office may have left the industry wanting but Mr Trump’s zeal for crypto will help boost its value long-term, Jon Ostler, chief executive of financial market site Finder, told Sky News.
“[Crypto] is like Father Christmas, the more people that believe in it, the stronger it is,” said Mr Ostler.
As well as his enthusiasm, the new president could offer much-needed clarity.
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A lot of governments, including the US, do not have clear guidelines on crypto, even down to defining what it is.
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Many hope President Trump will bring in legislation that will add clarity and give the industry some universal guidelines on what they can and cannot do.
“I’m dealing with 50 states on a state-by-state basis that all vaguely disagree with each other about how to do things,” said Austin Campbell, a professor at NYU’s business school to Bloomberg’s Odd Lots podcast on Monday.
“What I’m optimistic about in 2025 is federal legislation.”
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One of President Trump’s other promises on the campaign trail was to build a “US stockpile” of Bitcoin, although there was not any sign of that in Monday’s executive orders.
“If elected, it will be the policy of my administration to keep 100% of all the Bitcoin the US government currently holds or acquires into the future,” he said in August.
He said the funds would serve as the “core of the strategic national Bitcoin stockpile,” which could give the market more stability.
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However, “I think it’s just a bit of hype,” said Mr Ostler.
“It sounds cool [but] when you get down to the nitty-gritty of how global finance works, it might grind to a halt in the Houses.”
Despite all the uncertainty, many are still hopeful they have just gained a powerful ally in the Oval Office.
