Janice R. Andrews
After speculating that Donald Trump’s chances of winning reelection have risen due to his combative response to an assassination attempt, the cryptocurrency saw its biggest surge in nearly two months. The top cryptocurrency saw its largest daily increase since May 20 on Monday, rising as much as 5% to $63,000.
Trump was hurt in the right ear when gunfire broke out during a rally in Pennsylvania on Saturday. The attack gave the US presidential campaign a dramatic new turn and led to a worldwide condemnation of political violence. The betting markets moved quickly to increase the likelihood of a Trump win; many seeing his support for cryptocurrencies as a possible benefit to the sector.
According to Benjamin Celermajer, Chief Investment Officer at Magnet Capital, “the Republican party has been pro-crypto, and the increased probability of a Trump presidency is a positive which is boosting crypto markets.” This idea was reflected in the temporary spike in value of Bitcoin that followed the shooting, which was reminiscent of the market’s reaction to President Joe Biden’s dismal performance in a June debate against Donald Trump.
Concerns about the possibility of a “Trump trade,” which postulates that a Trump reelection may result in tax breaks, increased tariffs, and laxer regulations, have surfaced in international markets. The Bitcoin community is feeling even more optimistic since the conference organizers in Nashville, Tennessee, have verified that President Trump will still be speaking at the event on July 27.
Market expert Tony Sycamore of IG Australia Pty said that Bitcoin “gained momentum” following the attempt on Trump’s life, which improved his prospects of winning reelection. At 9:20 a.m. London time, the token’s trading value was $63,000. Despite its inherent volatility, proponents of Bitcoin contend that it serves as a hedge against political unrest and a store of value.
After meeting with Bitcoin miners in June, Trump said on his Truth Social account that mining the cryptocurrency might be “our last line of defense against a CBDC,” alluding to a digital currency issued by a central bank. He made it clear that he wanted the last of the Bitcoin to be “MADE IN THE USA!!!”
The cryptocurrency industry has made large donations to the Fairshake political action committee in an effort to aggressively promote politicians who are seen as being in favor of digital assets. Due in part to regulatory actions spearheaded by the Securities and Exchange Commission, the industry has grown to be a significant force in the 2024 election. Digital assets are accepted as donations to Trump’s campaign, and people with knowledge of the situation said that Trump has spoken with entrepreneur Elon Musk about crypto policy.
March saw Bitcoin reach an all-time high of about $74,000 due to demand for US exchange-traded funds specifically designed for that purpose. But later on, the token saw a drop due to dwindling inflows, the selling of confiscated tokens, and worries about the creditors of the now-defunct Mt. Gox exchange disposing of their holdings.
The response of the cryptocurrency market to Trump’s elevated odds of winning reelection highlights the complex interplay between digital assets and politics. The possible effects of Trump’s actions on the cryptocurrency market will continue to be a major concern for investors and enthusiasts alike as the 2024 presidential campaign develops.
