Bitcoin rose above $62,000 after Donald Trump’s strong response to his murder attempt triggered rumors that the pro-crypto former president’s chances of reelection have increased.
The biggest digital asset increased as much as 4.5% on Monday and was trading at $62,609 by 5:15 A.M in London, the highest level in more than a week. Smaller tokens also climbed, with Ethereum gaining about 4% in second place.
Trump said he was shot in the right ear during a gathering in Pennsylvania on Saturday, an incident that has prompted global denouncement of political violence and disrupted the US presidential campaign.
Some analysts believe that sympathy and anger over the incident will likely boost support for the Republican presidential candidate, who said he is “fine” after the incident and the Republican National Convention, which begins Monday in Milwaukee. Looking forward to going to the convention.
A crucial question in global markets now is whether the so-called Trump trade will gain momentum, based on arguments that his return to the White House will introduce tax cuts, higher duties and more relaxed rules.
Trump has also tried to promote the crypto industry to win over voters. Last week, organizers of a bitcoin conference scheduled to take place on July 27 in Nashville, Tennessee, said on the occasion.
Tony Sycamore, a market analyst at IG Australia Strip, wrote in a note that bitcoin “accelerated” after the effort as the prospect of Trump’s rule increased.
Supporters of the original cryptocurrency defend that it serves as a store of value and a hedge against political chaos, a claim supported by its recent movements.
Trump Advocates Bitcoin as Defense Against Central Bank Digital Currency
In June, Trump met with bitcoin operators, saying in a post on his Truth social account that bitcoin operators “could be our last line of defense against our central bank digital currency.” He also added that he wants the remaining bitcoin to be “Made in the USA!!!”
The crypto sector hopes that Foreshak will give major directions to the Political Action Committee in its efforts to strengthen influential figures in favor of the digital asset. The industry has emerged as a key player in the 2024 election to counter the increasing regulation by the Securities and Exchange Commission.
Trump’s campaign team is now open to receiving donations in digital assets, according to sources. Additionally, it was reported that Trump had discussions with billionaire Elon Musk regarding his cryptocurrency policy.
In March, Bitcoin reached an all-time high of nearly $74,000, driven by increased demand from U.S. exchange-traded funds (ETFs). Subsequently, the cryptocurrency’s value declined due to reduced inflows, reported sales of seized tokens, and concerns over divestments by creditors of the bankrupt Mt. Gox exchange.
How does geopolitical instability impact Bitcoin’s price?
Geopolitical events can influence Bitcoin’s price due to its perceived status as a safe-haven asset. When traditional markets face uncertainty or volatility, some investors turn to Bitcoin as a store of value, potentially pushing up its price.
Why did Bitcoin climb to a more than one-week high after the attack on Trump?
Bitcoin’s price often reacts to geopolitical events and market sentiment. The attack on Trump may have increased uncertainty among traditional markets, leading investors to seek alternative assets like Bitcoin, which is seen by some as a hedge against economic instability.
