Blockchain
Bitcoin Rises as Trump Optimism Fuels Crypto After Shooting
(Bloomberg) — Bitcoin rose by its highest in nearly two months after Donald Trump’s defiant response to an assassination attempt fueled speculation that the crypto-friendly former president’s chances of reelection had improved.
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Bitcoin rose as much as 5% on Monday, hitting $63,000, its biggest daily gain since May 20. Trump said he was shot in the right ear after gunfire erupted at a rally in Pennsylvania on Saturday, an episode that sparked global condemnation of political violence and rocked the U.S. presidential campaign.
Betting markets responded by immediately raising the odds of a Trump victory, as he portrayed himself as a cryptocurrency friend in an effort to woo swing voters. Bitcoin’s surge in the aftermath of the shooting mirrored its brief recovery following President Joe Biden’s disastrous debate performance against Trump in late June.
“The Republican Party has been pro-crypto and the increased likelihood of a Trump presidency is a positive factor that is boosting crypto markets,” said Benjamin Celermajer, chief investment officer at Magnet Capital.
A key question in global markets now is whether the “Trump trade” will gain momentum, based on the argument that his return to the White House would bring tax cuts, higher tariffs and looser regulations. Organizers of a Bitcoin conference in Nashville, Tennessee, on July 27 said they are still planning to speak at the event.
Bitcoin “gained momentum” after the assassination attempt boosted Trump’s reelection chances, Tony Sycamore, a market analyst at IG Australia Pty, wrote in a note. The token was trading at $63,000 as of 9:20 a.m. in London.
Proponents of the original cryptocurrency argue that it serves as a store of value and a hedge against political unrest, a controversial claim given its inherent volatility.
Meeting with the miners
Trump met with Bitcoin miners in June and in a subsequent post on his Truth Social account said that Bitcoin mining could be “our last line of defense against a CBDC,” referring to a central bank digital currency. He added that he wants all remaining Bitcoin to be “MADE IN THE USA!!!”
The cryptocurrency sector is seeking to support candidates seen as pro-digital assets, including through large donations to the Fairshake political action committee. The sector has emerged as an influential player in the 2024 election in part to counter a regulatory crackdown led by the Securities and Exchange Commission.
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Trump’s campaign accepts donations in digital assets, and a person familiar with the matter previously said Trump has discussed cryptocurrency policy with billionaire Elon Musk.
Bitcoin hit an all-time high of nearly $74,000 in March, fueled by demand from dedicated exchange-traded funds in the U.S. The token has since slipped back amid moderate inflows, apparent sell-offs of seized tokens and fears of divestments by creditors of the failed Mt. Gox exchange.
–With the collaboration of Ishika Mookerjee.
(Updates indicate that Bitcoin’s jump was the biggest since May 20.)
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