Bitcoin is surging after a rollercoaster few months after Donald Trump’s speech at a major cryptocurrency summit.

Trump spoke at the Digital Asset Summit (DAS) in New York on Thursday and bitcoin, by far the largest cryptocurrency, recovered much of its losses from recent months.

Bitcoin went over $100,000 (£77,200) for the first time in December 2024 but has since crashed down to $79,000 (£61,000) amid wider fears of economic turmoil caused by the Trump administration.

But ahead of Trump’s speech, the currency climbed back up to $86,000 (£66,400).

Speaking via video link from the White House Trump promised to make the US a bitcoin “superpower” and the “undisputed crypto capital of the world.”

He highlighted his administration’s actions on loosening regulations on the crypto industry, including ending what he called “operation chokepoint 2.0”, which saw federal agencies encouraging banks to not operate in risky sectors, particularly the crypto industry.

Trump said the operation went too far and acted as a form of “lawfare” against the industry.

The president has also instituted the US government’s Crypto Federal Reserve which will hold certain cryptocurrencies when they are acquired by state operations rather than sell them.

Despite the losses of recent months bitcoin has been on an incredible run in recent years after hitting a low of $16,000 (£12,300) in 2022. A lot of the recent gains have been associated with an event known as the Bitcoin halving that happened on 20 April 2024.

Halving is an event automatically triggered by the bitcoin network, which is designed to prevent inflation in the cryptocurrency but it can also trigger large price rises.

The halving happens roughly every four years and after each halving the following one to two years often see bitcoin’s price explode.

Aaron Peak, personal finance expert at credit reference company CredAbility, said: “Bitcoin is notoriously volatile: prices can surge or crash unpredictably, so investors should always be cautious.

“Bitcoin’s price has been on a rollercoaster recently, and we’ve seen some major price swings in recent months.”

What is Bitcoin halving?

Bitcoin halving reduces the rewards of mining the cryptocurrency by 50%.

Crypto miners use high-end computing rigs to perform calculations and are rewarded with bitcoin but after each halving, the reward decreases.

Miners complete calculations required to verify transactions, using computers to make guesses to solve the puzzle and the first to solve it adds a new block to the blockchain – a digital ledger that records and verifies transactions across a network of computers.

The dates of the halvings are not set, rather they occur every 210,000 blocks that are mined.

Aaron Peak, personal finance expert at credit reference company CredAbility said: “Right now, miners – who verify bitcoin transactions – earn 6.25 bitcoins for each new block they add to the blockchain.”

“After the next halving, their reward will drop to 3.125 bitcoins. This reduces the supply of new coins, which can affect bitcoin’s price.”

Why does it matter?

Bitcoin halving performs several important functions, restricting supply and limiting inflation, which helps to maintain the cryptocurrency’s value.

Peak explains: “Halving is important because it slows down how quickly new bitcoins are created. Historically, bitcoin halving has led to price increases. When fewer new bitcoins enter the market, but demand stays the same (or grows), the price often rises.

“It’s a bit like gold, if mining gold became twice as hard overnight, but people still wanted it, the price would likely go up. However, past performance doesn’t guarantee the same outcome every time, so there are no certainties.”

When is the next Bitcoin halving?

The next bitcoin halving event is expected to happen in 2028, but it all depends on how quickly miners create new blocks, Peak explained.

Peak said: “It will happen after another 210,000 blocks have been added to the blockchain, which usually takes around four years.

“This happens because bitcoin has a fixed supply – only 21 million bitcoins will ever exist. The process is built into bitcoin’s code to control inflation, a bit like how central banks manage the money supply, except no one can change bitcoin’s rules.”

Bitcoin halvings are expected to continue until 2040.

Grand Prairie, Texas — Joseph Buentello, 80, was cruising through retirement when he received a call erroneously claiming his son was in jail.

“I was scared, I hit the panic button and I let my panic take control of my good judgment,” Buentello, of Grand Prairie, Texas, told CBS News. 

The caller told Buentello that if he wanted to get his son out, he needed to rush to his local grocery store and send $5,000 through a bitcoin ATM. 

Buentello said he never even thought about calling his son first.

“They said there is nothing we can do about it,” said Buentello the ATM operator told him after he was scammed. “That money has already been distributed. They said it was distributed the minute you got through putting your money in there.”

That is why, Buentello learned, the cryptocurrency scammers wanted him to use that machine. Often found inside convenience stores, Bitcoin ATMs resemble regular ATMs and provide a legitimate and straightforward method to convert cash into cryptocurrency.

According to data from the Federal Trade Commission, between 2020 to 2023, consumer losses in bitcoin ATM scams skyrocketed nearly tenfold, from $12 million annually in 2020 to $114 million annually in 2023. During that timeframe, consumers over the age of 60 were more than three times more likely than younger adults to lose money to bitcoin scams, the FTC found.

And getting the money back has been tough.

When McLennan County Sheriff Parnell McNamara first joined law enforcement back in 1970, he said the biggest thieves in the Texas county were bank robbers.

“Take a gun, go rob a bank, get the money, and we’d go after ’em,” McNamara said. “But this is a totally different deal now.”

A couple of years ago, after a caller scammed an 83-year-old woman in Waco, Texas, into depositing $15,000 into a bitcoin ATM, McNamara’s deputies pulled the cash right out of the machine and returned it to her.

The bitcoin ATM operator then sued the county, claiming the seizure was unlawful, but the lawsuit was eventually dismissed and the woman was allowed to keep the money.

However, the lawsuit was dismissed only after the county admitted that the funds were seized “in error.”

McNamara doesn’t regret how the situation was handled.

“I don’t regret it at all,” McNamara said. “We got the lady’s money back. It should have gone back to her.”

Bitcoin ATM operators told CBS News that they take extensive measures to protect users from fraud, including displaying up to six screens alerting customers to potential scams.

In recent years, a handful of states, including California, Vermont and Minnesota passed laws regulating Bitcoin ATMs. However, most of the country, including Texas, has no regulations.  

“I feel like such a fool,” Buentello said.

Had there been any sort of refund policy in place when he made his transaction, Buentello believes could have saved his money and avoided the scam.

According to the FTC, scammers will often offer an urgent reason for the victim to withdraw cash from their bank account and deposit it in a bitcoin ATM. They will provide a QR code that victims can scan, which deposits the money directly into the scammers’ crypto account.

Some tips from the FTC to avoid being scammed include never clinking on unknown links or responding directly to unexpected calls or unknown text messages. Scammers will be trying to rush you, so you should slow down and consult with someone you trust. And never withdraw cash in response to an unexpected call or message. 

ECD Auto Design, a renowned custom luxury vehicle restoration company, has announced it will now accept cryptocurrency payments through BitPay. This move allows ECD to cater to a global clientele of crypto enthusiasts and high-net-worth individuals.

Specializing in iconic models like Land Rover Defenders, Range Rover Classics, Jaguar E-Types, Ford Mustangs, and Toyota FJs, ECD Auto Design emphasizes innovation. The integration with BitPay offers a secure and efficient cryptocurrency payment option for the brand’s bespoke vehicle builds. The company can now process payments in popular cryptocurrencies such as Bitcoin, Ethereum, and stablecoins, while receiving next-business-day settlements in USD to mitigate volatility risks. This partnership not only enhances transaction security and reduces fees but also positions ECD at the forefront of digital payment adoption in the luxury automotive industry.

Image Credit: ECD Auto Design