Bitcoin rallies as Trump shooting boosts re-election odds
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Analysts anticipate sympathy and anger over the incident will likely galvanise support for Trump.
PHOTO: EPA-EFE
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Melbourne - Bitcoin jumped the most in almost two months after Donald Trump’s defiant response to an assassination attempt
The largest digital asset rose as much as 5 per cent on July 15 to top US$63,000, the biggest daily gain since May 20. Smaller tokens were mixed, with second-ranked Ether posting modest gains.
Trump said he was shot in the right ear after gunfire erupted at a rally in Pennsylvania on July 13,
Betting markets responded by immediately boosting the odds of a victory by Trump, who has cast himself as friendly to crypto in a bid to court undecided voters.
“The Republican party has been pro-crypto and the increased probability of a Trump presidency is a positive which is boosting crypto markets,” said Benjamin Celermajer, chief investment officer at Magnet Capital.
The organisers of a Bitcoin conference due to be held in Nashville, Tennessee, on July 27 said he’s still scheduled to address the event.
Bitcoin “gained momentum” after the attempted assassination bolstered Trump’s chances of re-election, IG Australia market analyst Tony Sycamore wrote in a note.
Bitcoin’s advance right after the shooting mirrored its brief rally in the aftermath of President Joe Biden’s disastrous debate performance against Trump in late June.
One key question in global markets now is whether the so-called Trump trade will gain momentum, based on the argument that his return to the White House would usher in tax cuts, higher tariffs and looser regulations.
Advocates of the original cryptocurrency argue it acts as a store of value and hedge against political upheaval, a contentious claim given its inherent volatility.
Trump in June met with Bitcoin miners and in a subsequent post on his Truth Social account said Bitcoin mining may be “our last line of defence 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 crypto sector is trying to bolster candidates seen as favourable to digital assets, including through big donations to the Fairshake political action committee.
The industry has emerged as an influential player in the 2024 election in part to push back against a regulatory clampdown spearheaded by the Securities and Exchange Commission.
Trump’s campaign accepts donations in digital assets and a person familiar with the matter earlier said Trump discussed crypto policy with billionaire Elon Musk.
Bitcoin hit a record high of almost US$74,000 in March, fuelled by demand for dedicated US exchange-traded funds.
The token then slipped back amid moderating inflows, apparent sales of seized tokens and fears of disposals by creditors of the failed Mt. Gox exchange. BLOOMBERG
