Bitcoin reaches $120,000 peak as Trump backs regulations

A surge in Bitcoin's value is closely tied to regulatory expectations stemming from Donald Trump's policies.

Bitcoin reaches $120k mark due to Trump policy influence

Bitcoin has surpassed the $120,000 mark for the first time, largely driven by expectations of new cryptocurrency regulations under Donald Trump. Trading at $121,207 early on Monday, Bitcoin has more than doubled in value over the past year, benefiting from the President's promised support for digital currencies. Other cryptocurrencies are also experiencing gains due to Trump's backing. The US House of Representatives is set to debate several regulatory bills aimed at creating a framework for the $3.8 trillion crypto market. This follows Trump's descriptions of himself as the "crypto president" and his active involvement in crypto ventures. Market analysts attribute the recent growth to a broader recovery in financial markets since mid-April, which also includes record stock market highs.

Bitcoin's rise to the $120,000 level reflects deep connections between political sentiment and market performance. With many investors placing their hopes in Trump, the crypto industry is feeling both buoyed and exposed. If Trump moves forward with his tariff threats, this could shake the foundations that are allowing digital assets to thrive. Analysts caution that this volatility indicates how closely aligned the fortunes of crypto investments are with political maneuvers, suggesting a precarious balance going forward.

Highlights

The delicate balance of politics and finance remains key for investors in digital currencies.