Bitcoin Reaches New Peak as Trump Prepares for Crypto Gathering

A significant surge in Bitcoin’s value to an unprecedented high has unfolded just hours before President Donald Trump is slated to host a dinner for prominent cryptocurrency investors. This alignment of events is poised to further solidify Trump’s image as a proponent of digital assets, even as the nature of the gathering draws ethical scrutiny.

Around noon on Thursday, Bitcoin’s price hovered near $111,300. Earlier, at approximately 3:30 a.m., the cryptocurrency news outlet CoinDesk reported that Bitcoin had touched an all-time high of $111,875.

President Trump is scheduled to preside over a dinner at his Washington, D.C.-area property on Thursday evening, welcoming the leading holders of his “$TRUMP coin” cryptocurrency. Data from blockchain analytics firm Nansen indicates that over 200 largely anonymous crypto investors, many from international locations, collectively invested $394 million in this “memecoin.” Individual purchases for the token varied widely, from $55,000 to a substantial $37.7 million.

This exclusive event has been in development for several months, forming part of Trump’s broader strategy to both acknowledge and further cultivate support from the crypto community. This demographic emerged as the largest single donor group during the 2024 election cycle, contributing millions to the president’s campaign.

While some Bitcoin enthusiasts have expressed disappointment regarding the lack of direct investment in the token to back a strategic reserve, Trump’s administration has notably scaled back the aggressive regulatory enforcement that characterized the preceding Biden era in the crypto industry.

Nevertheless, even long-standing Bitcoin investors were reportedly surprised by Trump’s announcement of his “$TRUMP coin” on the eve of his inauguration. Despite an initial price surge followed by a decline, reports suggest Trump and his family accrued millions from the token’s initial sales.

Critics have voiced concerns about the memecoin dinner, citing potential conflicts of interest, issues of foreign influence, and even constitutional questions. Notably, the top buyer, Justin Sun, is a Chinese national who has previously been a subject of interest for U.S. law enforcement.

Trump has largely dismissed these criticisms. Although the “$TRUMP coin” is managed by Trump’s private corporate entity, White House officials previously conveyed to NBC News that through such events, “The President is working to secure GOOD deals for the American people, not for himself,” and that his actions are “only in the best interests of the American public.”

This ongoing focus on the cryptocurrency sector coincides with Bitcoin’s recent price escalation. This surge is occurring amidst renewed apprehensions regarding the global economy and a worldwide increase in government borrowing that has led to a sell-off in traditional bonds. For some, these macro trends have rendered alternative assets like Bitcoin more appealing.

Despite the cryptocurrency reaching new valuations, debate persists about its efficacy as a true hedge against broader market volatility. In recent years, with a few notable exceptions, Bitcoin’s price has often mirrored that of other technology stocks, albeit with more pronounced price swings. Its correlation with Federal Reserve interest rate decisions has also been tight: cuts by the Fed have typically seen Bitcoin’s price rise, while sustained higher rates have corresponded with declines. These patterns have challenged the narrative promoted by some Bitcoin advocates that the cryptocurrency can serve as an inflation hedge or an alternative to the U.S. dollar.

However, the latest ascent in Bitcoin’s price has unfolded even as many tech stocks and the broader S&P 500 have experienced downturns. Part of this upward momentum has been bolstered by the recent passage of the GENIUS Act. This legislation is designed to provide official government endorsement for the issuance of privately-backed digital tokens that facilitate crypto exchange transactions. While the bill primarily targets these “stablecoins,” any expansion in the pool of cryptocurrency buyers naturally contributes to supporting Bitcoin’s price. This development renews optimism that the digital token can achieve a form of “escape velocity,” enabling it to gain value regardless of the prevailing economic climate.

“It’s not going away, it’s going to be part of a lot of portfolios, even if it’s just 2-3%,” commented Dan Ives, managing director of Wedbush Securities’ finance group. “It’s still a risky asset, but the deregulatory environment has changed the way people view crypto as an investment.”