Bitcoin price recovers after Trump announces executive order

Bittime - Bitcoin saw a significant recovery to the $94,000 mark after reports that Donald Trump will sign an executive order supporting the crypto industry on his first day in office. This move could potentially overturn some controversial regulations, including the SEC's Staff Accounting Bulletin 121 (SAB 121), which has long been a hindrance to the crypto sector.

This pro-crypto policy has not only affected the price of Bitcoin, but also increased optimism in the digital asset ecosystem. Trump's move is expected to change the course of crypto regulation in the United States.

Trump Prepares to Overhaul Crypto Regulations

According to a report from The Washington Post, Trump's executive order focuses on addressing key barriers faced by the crypto industry, such as the limitations of banking services for crypto businesses and the SAB 121 rule.

SAB 121, which requires companies to record clients' digital assets as liabilities on their balance sheets, has been widely criticized by the industry and lawmakers. Despite bipartisan efforts to repeal this policy, a veto from previous President Joe Biden stopped the changes.

Trump's executive order is expected to provide better access to banking services for crypto businesses, reduce regulatory risk, and encourage wider adoption.

Also read: BlackRock Launches Bitcoin ETF for Canadian Investors, BTC Recovers!

Bitcoin Price Rises after Announcement

Following news of Trump's executive order, Bitcoin price, which had dropped to $89,000, recovered quickly to $94,000. This recovery was also followed by other digital assets, including Ethereum which climbed back to $3,100.

Altcoins such as AAVE also recorded significant gains, driven by market optimism regarding potential regulatory improvements. The market welcomed this move as a signal of stability and new growth opportunities under an administration that is more supportive of the crypto industry.

Impact on Crypto Regulation

Trump's executive order also includes plans to restructure the FDIC (Federal Deposit Insurance Corporation) to improve the efficiency of the financial regulator. FDIC Vice Chairman Travis Hill even voiced support for more crypto-friendly policies.

In addition, Trump reportedly appointed David Sacks as the first “Crypto Czar”, along with Paul Atkins, a former pro-crypto regulator, to lead the SEC. This move demonstrates a commitment to provide policy direction that is more conducive to innovation in blockchain technology and digital assets.

Also read: MicroStrategy Buys 2,530 Bitcoin, Total Owns 450,000 BTC

The Future of Bitcoin and the Crypto Industry

Trump's inauguration as US president is expected to be an important turning point for the crypto sector. Pro-crypto policies, friendly regulatory support, and the involvement of big players in the industry are positive signs for the future.

For investors, these changes create new opportunities to participate in a more stable and well-regulated digital asset market. With Bitcoin prices continuing to rise, optimism for long-term growth is growing stronger.

FAQ

Why did Bitcoin price rise after Trump announced the executive order?

Bitcoin price rose because the executive order announced by Trump is considered a pro-crypto move that supports the digital asset industry. The policy is expected to reduce regulatory barriers and improve crypto businesses' access to banking services.

What does Trump's executive order address regarding crypto?

The executive order focuses on eliminating controversial policies such as SAB 121, which imposes burdens on crypto companies. Additionally, the move aims to create a more business-friendly regulatory environment for digital asset businesses and investors.

How will it impact the overall crypto market?

The crypto market showed a positive response, with the price of Bitcoin and other digital assets recovering after this announcement. More supportive policies are expected to provide stability and growth opportunities in the future.

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Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

References

beincrypto.com, Bitcoin Surges Back to $94,000 as Trump Plans Pro-Crypto Executive Orders, accessed on January 14, 2025.

Author: AWW