Trump Effect Fuels Crypto Frenzy: Bitcoin Surges Past $97,000, White House May Create Crypto-Specific Role

Trump Effect Fuels Crypto Frenzy: Bitcoin Surges Past $97,000, White House May Create Crypto-Specific RoleBitcoin reached a new all-time high today, surpassing $97,000 per coin and experiencing a nearly 6% surge in 24 hours. This remarkable rally is closely linked to recent news surrounding US President-elect Trump: reports suggest his team is considering creating a dedicated White House position to oversee cryptocurrency policy

Trump Effect Fuels Crypto Frenzy: Bitcoin Surges Past $97,000, White House May Create Crypto-Specific Role

Bitcoin reached a new all-time high today, surpassing $97,000 per coin and experiencing a nearly 6% surge in 24 hours. This remarkable rally is closely linked to recent news surrounding US President-elect Trump: reports suggest his team is considering creating a dedicated White House position to oversee cryptocurrency policy. This news ignited the cryptocurrency market, driving Bitcoin's price surge and boosting the overall crypto market capitalization by over $800 billion.

Trump Team Actively Pursuing Cryptocurrency Policy Initiatives

According to Bloomberg, sources familiar with Trump's transition team revealed that his team is actively discussing with the digital asset industry the creation of a new White House position specifically focused on cryptocurrency policy. Insiders say the team is currently reviewing potential candidates and has begun meeting with key figures in the industry.

In recent days, several cryptocurrency industry leaders visited Trump's Mar-a-Lago resort for personnel discussions and interviews. This includes Brian Brooks, a former Coinbase and Binance US executive and potential SEC chairman candidate, and Coinbase CEO Brian Armstrong. The involvement of these high-profile individuals further underscores the Trump team's serious consideration of this new position and highlights the growing importance of the cryptocurrency industry within a potential Trump administration.

If established, this would be the first White House position solely dedicated to cryptocurrency, signifying a new level of government attention to the industry. The role, according to reports, would involve leading a small team responsible for coordinating communication between Trump, Congress, and federal agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The exact responsibilities and seniority of this position remain unclear. It could be a high-level White House staff position or a coordinator role, akin to a "crypto czar," responsible for coordinating cryptocurrency policy across federal agencies. However, cryptocurrency industry advocates are actively pushing for the position to report directly to Trump to ensure policy effectiveness and execution.

Trump expressed a friendly attitude towards the cryptocurrency industry during his campaign, promising to fire SEC Chair Gary Gensler, known for his skeptical stance on crypto, on his "first day in office." This promise, coupled with the current push for a dedicated White House cryptocurrency position, sends strong positive signals to the market, boosting investor confidence in the future of cryptocurrency.

Further bolstering market optimism is news that Trump's social media company is in advanced talks to acquire Bakkt, the cryptocurrency trading platform owned by Intercontinental Exchange. This acquisition would expand Trump's business portfolio and solidify his influence in the digital asset space. Two sources familiar with the matter revealed that Trump's media and tech group plans a full acquisition of Bakkt. While the exact valuation is undisclosed, Bakkt's market cap was slightly above $150 million on Monday.

Bitcoin Breaks $97,000: A Multi-Factor Convergence

Simultaneously with the market excitement surrounding Trump's news, Bitcoin hit a new all-time high, briefly surpassing $97,000 per coin on November 21st (Beijing time). Since Trump's election win, Bitcoin's price has steadily risen, accumulating a gain of over 40%.

Bitcoin's surge is not solely attributable to the "Trump effect"; several factors are at play. First, a politically favorable environment for cryptocurrencies is a significant driver. The positive attitude of a potential Trump administration and potential policy support provide a favorable external environment for the long-term development of Bitcoin and other cryptocurrencies.

Second, the current economic climate is pushing investors towards alternative assets like Bitcoin. Increasing inflation risks are driving demand for Bitcoin as an inflation hedge and a tool for portfolio diversification. Growing interest from institutional investors further fuels the price increase.

MicroStrategy recently purchased 51,780 Bitcoins for approximately $4.6 billion, bringing its total holdings to 331,200 Bitcoins, valued at over $3 billion. The company plans to sell $2.6 billion worth of notes to fund further Bitcoin purchases. As the largest publicly traded Bitcoin holder, MicroStrategy's actions strongly endorse Bitcoin's value and boost market confidence.

Furthermore, the development of infrastructure supporting mass adoption continues to improve, laying a solid foundation for Bitcoin's further growth.

While Bitcoin's future trajectory is uncertain, proponents view it as a modern store of value. Skeptics, however, express concerns about its lack of intrinsic value and its potential use in money laundering and criminal activities.

IG Australia Pty market analyst Tony Sycamore stated, "Buyers are piling in. While I'm not sure the path to $100,000 will be smooth, the demand seems insatiable."

HashKey Group chief analyst Jeffrey Ding noted that Bitcoin's gains have exceeded 30% due to the "Trump trade." While short-term selling pressure exists, strong buying support has driven significant price increases, even decoupling Bitcoin's performance from the Nasdaq.

He believes that after Trump's inauguration, Bitcoin will receive significant policy support, including inclusion in government reserves, the establishment of a presidential advisory committee, and a change in SEC leadership. These measures would create a more favorable market environment for Bitcoin and expand its upside potential.

Currently, the White House transition is underway, and a regulatory and policy vacuum may exist until Trump's official inauguration in late January. This relatively relaxed political environment may also help ease tensions in the financial markets.

Besides policy support, quantitative easing (QE) has also contributed to Bitcoin's price surge. The Federal Reserve's November rate cut of 25 basis points increased market liquidity, boosting demand for high-risk assets like Bitcoin and further pushing up prices. JPMorgan Chase expects another rate cut in December and an end to balance sheet reduction in the first quarter of next year.

In the long term, Bitcoin still has potential for further price appreciation. However, investors need to carefully assess the risks and make investment decisions based on their own circumstances.