24th January 2025 – (Washington) Bitcoin edged marginally higher after President Donald Trump signed executive actions related to cryptocurrency and artificial intelligence on Thursday. The largest cryptocurrency by market value rose around 1%, having earlier climbed as high as 2.7% to reach $106,850.
The executive order was signed in Washington with White House AI and crypto czar David Sacks present, although specific details of the order have yet to be disclosed. The cryptocurrency industry had anticipated an executive order on Trump’s first day in office, and when that did not materialise, token prices fell after reaching record highs earlier in the week.
The price of Bitcoin briefly surged following Trump’s directive to evaluate the potential for a “national digital asset stockpile.” However, it soon fell back as traders reassessed the implications of the order, which did not establish a strategic bitcoin reserve as some advocates had hoped.
The concept of a strategic reserve for digital assets like bitcoin has been discussed within cryptocurrency circles for some time, gaining momentum this summer when both Trump and Robert F. Kennedy Jr., his nominee for Health and Human Services Secretary, mentioned it at the annual Bitcoin conference. Trump reaffirmed his commitment to the idea in a December interview with CNBC, asserting that it was essential for the United States to lead in cryptocurrency technology, especially in relation to China.
Senator Cynthia Lummis, a long-time advocate for Bitcoin, released a statement hours before Trump’s order, calling for the creation of a strategic Bitcoin reserve. She argued that such a reserve would “strengthen the U.S. dollar” and reinforce the country’s position as a financial innovator.
During his presidential campaign, Trump actively courted the crypto community, which ultimately became his largest donor group. He promised to position the United States as “the crypto capital of the world” and indicated intentions to roll back Biden-era restrictions on crypto activities.
Just before taking office, questions arose regarding Trump’s potential personal benefits from pro-crypto measures. Last Friday, he launched his own digital token, $TRUMP, which has been perceived as a means to track the success of his administration. However, the token, classified as a “memecoin,” has no intrinsic value, and its price surged as investors speculated on its relevance. This move faced backlash from some in the cryptocurrency community, particularly after First Lady Melania Trump introduced her own coin shortly thereafter.
Trump’s administration also reversed a Biden-era directive that aimed to research a U.S. central bank digital currency (CBDC), which has faced scrutiny due to concerns over privacy and surveillance. The executive order declared that CBDCs “threaten the stability of the financial system, individual privacy, and the sovereignty of the United States,” effectively prohibiting the establishment or circulation of a CBDC in the country.
