The rally is probably going a part of the optimism surrounding Trump’s crypto-friendly stance, together with potential plans for a nationwide Bitcoin reserve and regulatory easing. Nevertheless, controversy arose after the launch of the TRUMP and MELANIA meme cash. The speedy succession of the launch attracted allegations of pump-and-dump schemes and market manipulation. In the meantime, Coinbase CEO Brian Armstrong not too long ago advocated for world Bitcoin reserves, which couldn’t solely assist the states or international locations that undertake these reserves, however may give the worth of Bitcoin a pleasant enhance as nicely.
Bitcoin Surges Previous $109K!
The worth of Bitcoin surged by over 6% in mere minutes, which allowed it to achieve a brand new all-time excessive (ATH) simply hours earlier than Donald Trump’s inauguration because the forty seventh President of the US. On Jan. 20, Bitcoin briefly jumped previous $109,000 to set a brand new peak at $109,114, in keeping with knowledge from CoinMarketCap.
Bitcoin’s worth motion over the previous 24 hours (Supply: CoinMarketCap)
Its earlier ATH was near $108,000, which was set on Dec. 17, 2024. Nevertheless, the worth rapidly retreated beneath $108,000 shortly after hitting the milestone. At press time, BTC was buying and selling fingers at $107,677.
Bitcoin’s worth climbed by roughly 3% previously 24 hours. This surge occurred in the course of the heightened anticipation of Trump’s swearing-in ceremony that’s scheduled for 4:00 pm UTC. Past Bitcoin, the occasion fueled widespread bullish sentiment within the crypto market. His November election victory already led to an enormous rally, which pushed Bitcoin above $100,000 for the primary time in early December of 2024.
Optimism within the crypto group can be rising due to Trump’s crypto-friendly stance. His proposed plans to doubtlessly set up a strategic Bitcoin reserve and pursue regulatory easing within the crypto sector made a number of merchants and analysts very excited, and it very doubtless contributed to the most recent rally.
TRUMP and MELANIA Tokens Spark Controversy
Whereas Trump’s inauguration could also be behind Bitcoin’s newest achievement, the soon-to-be President and his group are nonetheless below scrutiny as a consequence of allegations of orchestrating a “pump and dump scheme” after the launch of back-to-back meme cash. On Jan. 18, the Official Trump (TRUMP) token was launched, and it rapidly soared to a $15 billion market cap. The subsequent day, Melania Trump launched her personal self-branded meme coin, MELANIA. These launches so shut in succession induced widespread accusations of unethical habits.
Critics pointed to the speedy succession of launches as proof of greed. Jim Bianco, president of Bianco Analysis, shared his ideas on the technique, and believes that the introduction of MELANIA after TRUMP’s success was seen as dilution. The market reacted fairly unfavorably because the TRUMP token misplaced greater than 30% of its worth in simply hours after MELANIA’s debut.
Naturally, the fallout attracted a number of sharp criticism. Edward Dowd, founding father of Phinance Applied sciences, described the state of affairs as the biggest unforced error forward of a presidential inauguration. Monetary analyst Michael A. Gayed referred to as the TRUMP token a “pump and dump” scheme, and shared that Trump’s credibility was irreparably broken.
José Maria Macedo, co-founder of Delphi Labs, instructed that the launches had been rushed makes an attempt to capitalize on the success of TRUMP. Ryan Selkis, a Trump supporter and former CEO of Messari, even really helpful that Trump hearth the builders behind the MELANIA token due to their incompetence.
The launch of MELANIA additionally coincided with a broader downturn within the crypto market, as Bitcoin fell almost 6% from $105,900 to beneath $99,650. Nevertheless, Bitcoin was capable of attain its new ATH not too lengthy after.
Regardless of the controversy, the 2 tokens nonetheless attracted a number of consideration from merchants, with a mixed market cap of greater than $16 billion. For now, the launches and their aftermath induced intense debate in regards to the moral implications and potential authorized ramifications of the meme cash.
Coinbase CEO Pushes for International Bitcoin Reserves
Regardless of the volatility brought on by Trump’s inauguration and meme coin drama, Bitcoin may nonetheless obtain a pleasant enhance after Brian Armstrong, CEO of Coinbase, advocated for world leaders to ascertain Bitcoin strategic reserves. Total, he believes crypto is a key part of the long run digital financial system.
In a Jan. 17 weblog publish, Armstrong described cryptocurrencies as “the following chapter of capitalism” and urged policymakers to undertake crypto-friendly legal guidelines, enhance authorities effectivity, create particular financial zones, and take into account Bitcoin reserves as a hedge in opposition to inflation. He additionally speculated that Bitcoin may play a task as main as gold within the world financial system and will even doubtlessly shift the steadiness of energy amongst nations.
(Supply: Coinbase)
Over the previous 12 months, Coinbase deepened its political affect by donating greater than $45 million to the Fairshake PAC and $1 million to President-elect Donald Trump’s inauguration fund in the course of the 2024 election cycle. Armstrong additionally met with Trump in November to debate personnel appointments. Many individuals believed that this was a transparent signal that the corporate may play a serious function in the case of shaping US crypto coverage. Trump is reportedly contemplating making cryptocurrency a nationwide precedence in 2025.
Though Coinbase and its execs are enthusiastic about the way forward for crypto within the US, authorized challenges involving Coinbase and US regulators are nonetheless unresolved. The SEC filed an enforcement motion in opposition to Coinbase in 2023 as a consequence of unregistered securities change actions. Coinbase additionally pursued lawsuits in opposition to the SEC and FDIC over alleged makes an attempt to debank crypto corporations.
With the Trump administration is ready to take workplace and probably reframe the SEC’s management, the way forward for these authorized battles and the broader regulatory atmosphere of the US remains to be unclear for now.
Wyoming Pushes for Strategic Bitcoin Reserve
Some US states are taking the Coinbase CEO’s recommendation to coronary heart. Wyoming not too long ago launched a invoice to ascertain a Strategic Bitcoin Reserve, which made it the most recent US state to contemplate investing state funds in Bitcoin.
The invoice is titled “State Funds-investment in Bitcoin,” and was introduced on Jan. 17. It permits a portion of Wyoming’s state funds to be allotted to Bitcoin if handed. Wyoming Senator Cynthia Lummis, who’s a really well-known Bitcoin advocate, praised Consultant Jacob Wasserburger for spearheading the laws, which she described as a “forward-thinking strategy” that positions Wyoming as a pacesetter in monetary innovation.
The proposed laws will allow the Wyoming state treasurer to take a position funds from the overall fund, the everlasting Wyoming mineral belief fund, and the everlasting land fund in Bitcoin. Nevertheless, every fund is restricted to a most allocation of three%. If the market worth of the Bitcoin investments in any fund rises over the three% cap, the treasurer is not going to be obligated to promote property to adjust to the restrict.
A number of different states, together with Pennsylvania, Texas, Ohio, New Hampshire, Oklahoma, North Dakota, and Massachusetts, have additionally launched comparable Strategic Bitcoin Reserve payments. The push for these reserves had been doubtless made as a result of rising hypothesis that President-elect Donald Trump could prioritize the institution of a nationwide Bitcoin reserve after taking workplace on Jan. 20.