In a dramatic turn of events, Bitcoin has surged past $62,000 following an attempted assassination on pro-crypto presidential candidate Donald Trump over the weekend. The attack has significantly boosted the former president’s chances of winning the November 4 elections, with his probability of victory now at 70% according to Polymarket. This has brought the “Trump cryptocurrency stance” into the spotlight, highlighting how his policies could influence the crypto market.
Bitcoin Rally and Market Reactions
Bitcoin surged past $62,000 following an attempted assassination on pro-crypto presidential candidate Donald Trump. The attack boosted Trump’s election chances to 70%, according to Polymarket. Bitcoin (BTC) rose 7% to $62,500, surpassing its 200-day simple moving average (SMA), signaling positive momentum for traders. Greg Magadini, Director of Derivatives at Amberdata, noted, “The attempted assassination of Donald Trump has significantly influenced the political landscape. With improved odds of a Trump presidency, the pro-crypto stance could boost the cryptocurrency market.”
Trump’s Crypto Embrace
In recent months, the “Trump cryptocurrency stance” has seen a notable shift as Trump has adapted his position on cryptocurrencies to appeal to the crypto community, which is eager for a friendlier regulatory environment. This pivot is seen as a strategic move to outflank his rival, Joe Biden. Trump’s commitment to the crypto cause is underscored by his planned appearance at the Bitcoin 2024 conference in Nashville, Tennessee, on July 27.
Broader Market Implications
The attempted assassination has not only impacted the crypto market but also other financial sectors. The Chinese yuan (CNY) and the Mexican peso (MXN) both weakened against the U.S. dollar. A potential Trump victory raises concerns about higher trade tariffs, as Trump has previously suggested revoking China’s “most favored nation” status for U.S. trade and imposing tariffs of over 60% on Chinese goods. The Mexican peso’s decline reflects uncertainties stemming from Trump’s historically tense relations with Mexico.
In the bond market, futures tied to the 10-year Treasury note fell, indicating expectations of higher yields. A Trump presidency is anticipated to bring increased spending, tax cuts, and higher budget deficits, which several investment banks believe could steepen the currently inverted yield curve. Historically, a sharp steepening of the yield curve has led to broad-based risk aversion in financial markets.
Stock Market and Economic Indicators
Despite these fluctuations, futures tied to the S&P 500 traded 0.18% higher, suggesting a positive open on Monday. This comes even as Asian stocks dipped due to disappointing economic growth figures from China. The dollar index, which measures the greenback’s value against major fiat currencies, traded 0.10% higher at 104.19, reflecting a slight strengthening of the U.S. dollar.
In Summary
The recent attack on Donald Trump has had a significant impact on the financial markets, especially in the cryptocurrency sector. The “Trump cryptocurrency stance,” highlighted in his campaign and upcoming appearance at the Bitcoin 2024 conference, has boosted investor confidence and driven Bitcoin prices higher. This incident has underscored the importance of Trump’s cryptocurrency stance in the broader financial landscape, affecting currencies, bonds, and stock markets globally.
