- Bitcoin surged 5% to over $63,000 after Trump’s response to an assassination attempt, boosting reelection speculation.
- Advocates see Bitcoin as a hedge against political instability, despite its volatility.
Bitcoin saw its biggest surge in nearly two months after Donald Trump’s defiant response to an assassination attempt, boosting speculation about his reelection chances. The cryptocurrency rose five percent on Monday, surpassing $63,000. This event highlights Bitcoin’s volatility and its potential role as a hedge against political uncertainty, especially with Trump’s pro-crypto stance influencing market dynamics.
Bitcoin’s Significant Rise Amid Political Turbulence
Bitcoin rose as much as five percent on Monday, reaching over $63,000, marking the biggest daily gain since May 20. This surge followed Trump’s statement about being shot in the right ear after gunfire erupted at a rally in Pennsylvania on Saturday. The incident drew global condemnation of political violence and shook the U.S. presidential campaign.
Market Reactions to Trump’s Increased Election Odds
Betting markets reacted by immediately boosting the odds of a Trump victory. Trump has positioned himself as friendly to cryptocurrencies to attract undecided voters. Bitcoin’s rise after the shooting mirrored its brief rally following U.S. President Joe Biden’s poor debate performance against Trump in late June.
Benjamin Celermajer, Chief Investment Officer at Magnet Capital, noted, “The Republican party has been pro-crypto and the increased probability of a Trump presidency is a positive which is boosting crypto markets.”
The Trump Trade: Potential Market Implications
A key question in global markets now is whether the “Trump trade” will gain momentum, with the argument that his return to the White House could lead to tax cuts, higher tariffs, and looser regulations. Organizers of a Bitcoin conference scheduled for July 27 in Nashville, Tennessee, confirmed that Trump is still set to address the event.
Tony Sycamore, market analyst at IG Australia Pty, wrote in a note that Bitcoin “gained momentum” after the assassination attempt bolstered Trump’s reelection chances. The token was trading at $63,000 as of 9:20 a.m. in London.
Bitcoin as a Hedge Against Political Instability
Advocates of Bitcoin argue it acts as a store of value and a hedge against political upheaval, despite its inherent volatility. The recent events have highlighted this perspective, with the cryptocurrency’s value responding significantly to political developments.
Meeting with Miners and Crypto Policy
In June, Trump met with Bitcoin miners and later stated on his Truth Social account that Bitcoin mining could be “our last line of defense against a CBDC,” referring to a central bank digital currency. He emphasized his desire for all remaining Bitcoin to be “MADE IN THE USA!!!”
The crypto sector is actively supporting candidates favorable to digital assets through substantial donations to political action committees like Fairshake. The industry has become a significant player in the 2024 election, aiming to counter regulatory efforts led by the U.S. Securities and Exchange Commission.
Crypto Donations and Industry Influence
Trump’s campaign accepts donations in digital assets. A source familiar with the matter revealed that Trump discussed crypto policy with billionaire Elon Musk. This engagement highlights the growing influence of the crypto industry in political spheres.
Bitcoin reached a record high of almost $74,000 in March, driven by demand for dedicated U.S. exchange-traded funds. The token then declined amid moderating inflows, apparent sales of seized tokens, and concerns about disposals by creditors of the failed Mt. Gox exchange.
Conclusion
Bitcoin’s recent jump, driven by Donald Trump’s potential reelection, highlights its sensitivity to political events. Trump’s pro-crypto stance has boosted market confidence, showcasing Bitcoin’s role as both an investment and political tool. As the 2024 election nears, Bitcoin’s performance will likely remain volatile, reflecting its unique position in the financial landscape. This episode underscores Bitcoin’s potential as a hedge against political instability and a focal point for market speculation.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
