Bitcoin climbs above $100K for the first time amid Trump's crypto-friendly plans¡ªbut what's Putin's stance?

Bitcoin has surged past the $100,000 mark, marking a historic moment in its volatile journey. The latest rally comes on the heels of a shift in the political landscape, with President-elect Donald Trump signalling a potential pivot toward lighter regulation of the crypto industry.

This bullish sentiment was also fuelled further by Trump's decision to nominate Paul Atkins, a former SEC commissioner known for his advocacy against excessive market regulation, as the next chair of the Securities and Exchange Commission, the independent US government agency that regulates the securities industry and publicly-owned companies.

Trump's announcement has stirred optimism among crypto investors, suggesting a friendlier regulatory environment under his administration.

Cryptocurrency under Donald Trump

The cryptocurrency's ascent has been meteoric since Trump's election victory on November 5.

From trading at $69,374 (Rs 58,78,315) on Election Day, Bitcoin has skyrocketed to an unprecedented $101,512 (Rs 86,01,421), a dramatic rebound from its dip below $17,000 (14,40,461) two years ago following the FTX debacle.

However, Bitcoin's position above the $100,000 threshold raises questions about its longevity at this level, AP reports.

Experts remain divided¡ªsome project further gains, buoyed by regulatory relief and growing institutional interest, while others caution about the inherent risks and volatility of crypto investments.

For now, Bitcoin's milestone reflects the broader market's anticipation of a new chapter for cryptocurrency under a potentially more lenient regulatory regime.

What did Vladimir Putin say about Bitcoin?

Vladimir Putin on Wednesday accused the U.S. of undermining the dollar's status as a global reserve currency by leveraging it for political purposes.

This, he claimed, is pushing countries toward alternative financial instruments, including cryptocurrencies.

He specifically mentioned Bitcoin, stating, "For instance, Bitcoin¡ªwho can prohibit it? No one."

According to Putin, emerging payment technologies like Bitcoin offer lower costs and greater security, making them an inevitable part of the financial landscape.

What is Bitcoin?

Credit: businessinsider

For those unaware, Bitcoin is a cryptocurrency or digital currency that allows people to send and receive money over the internet without using banks.

It was invented in 2008 by an unknown person or group called Satoshi Nakamoto, with its first use as a currency starting in 2009 through open-source software.

Instead of physical coins, Bitcoin exists only online and uses a technology called blockchain to keep track of transactions. It¡¯s known for its limited supply (only 21 million will ever exist) and its value can change a lot, making it both a risky and exciting investment.

Bitcoin has a fixed supply, with only 21 million coins ever to be made, which creates scarcity similar to gold.

This limited supply, combined with its price volatility, makes Bitcoin both a high-risk and exciting investment.

Cryptocurrencies like Bitcoin operate on decentralised systems, meaning transactions are verified by a global network of computers instead of a central authority like a government or bank.

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