Trump Effect: Bitcoin breaks $105,000 mark

The Bitcoin succeeds for the first time Jump over the $105,000 mark. According to analysts, the digital currency continues to benefit from hopes of a return Donald Trumps to the White House and an associated crypto-friendly policy in the USA.

With a rise of over three percent, the virtual coin reached a peak of $106,533 in early Asian time on Monday before settling at around $105,688 (100,483 euros).

It was last quoted at $104,760. Other digital currencies also rose significantly, with the smaller cryptocurrency Ethereum rising by almost three percent to $4,014.

Trump has big plans for cryptocurrencies

Trump’s statements at the station CNBC last week caused a stir in the crypto scene. “We are going to do something big with cryptocurrencies because we don’t want China or anyone else to overtake us,” said the future US president. When asked about a possible cryptocurrency reserve similar to the strategic oil reserve, Trump replied: “Yes, I think so.”

Despite all the euphoria, there are also critical voices. Federal Reserve Chairman Jerome Powell recently compared Bitcoin to gold, pointing to high volatility that makes Bitcoin unattractive as a means of payment or a store of value.

“It’s not competition for the dollar.” Trump this month named David Sacks, a former PayPal executive and close friend of Trump adviser Elon Musk, as White House envoy for artificial intelligence and cryptocurrencies. He also announced that he would appoint crypto-friendly Washington lawyer Paul Atkins as head of the Securities and Exchange Commission.

“We are in uncharted territory here,” commented IG analyst Tony Sycamore. “The next target the market will go for is $110,000. The drop that many were waiting for just didn’t happen because we now have this news.”