Bitcoin hits $105,000 after Trump's executive order supporting cryptocurrency
What's the story
Bitcoin, the world's number one cryptocurrency, has jumped a whopping 3% in value after an executive order from US President Donald Trump. The digital asset hit a high of $105,000 during Friday's trading session. The spike follows Trump's order to set up a working group to regulate digital assets and potentially create a national cryptocurrency reserve.
Regulatory protection
Trump's order aims to protect banking services for crypto firms
Along with forming a working group, Trump's executive order also aims to protect banking services for cryptocurrency firms. The move comes amid concerns that US regulators are pressuring banks to sever ties with these companies, a claim that the regulators have denied. The directive also forbids the introduction of central bank digital currencies (CBDCs) in the US, which could compete with existing cryptocurrencies.
Market response
Crypto industry welcomes Trump's executive order
The crypto industry has welcomed Trump's executive order with open arms, with many having called for a clear support from the administration during his early days in office. Following the announcement, Bitcoin was trading at $104,971 after hitting an intraday high of $106,820. Other major cryptocurrencies such as Ethereum also saw a boost in their value. The global cryptocurrency market capitalization increased by 2.65%, hitting a staggering $3.61 trillion.
Market impact
Other cryptocurrencies also see gains following Trump's order
Following Trump's executive order, other major cryptocurrencies also gained. Solana rose by 4%, XRP by 1%, Dogecoin by 1.3%, Cardano by 3.5%, and Chainlink by 5.2%. Cryptocurrencies such as Tron, Avalanche, Stellar, and Hedera also posted gains in response to the announcement. "The cryptocurrency market has reacted positively to President Trump's executive order," said Shivam Thakral, CEO of BuyUcoin.