PoliFi Tokens Inspired by Trump Defy Bitcoin Downtrend amid Renewed China Stimulus Optimism
Trump-themed PoliFi tokens have shown strong performance this week, surpassing the sluggish market trend as the Republican candidate gained ground over Kamala Harris on Polymarket. Meanwhile, crypto traders in Asia are closely monitoring Beijing’s upcoming actions as the People’s Bank of China (PBoC) readies additional stimulus measures.
The Donald Trump-themed Political Finance (PoliFi) tokens stood out amidst low volatility in the crypto market, with the Republican candidate’s election prospects reaching a two-month high on Polymarket. Bitcoin experienced a temporary decline of over 4% in U.S. trading hours on Thursday, bouncing back during Asian morning hours on Friday, now trading above $60,000, amid renewed concerns over regulatory issues impacting the market.
The resurgence of inflation pressures in September initially led to market declines, with major cryptocurrencies like ether (ETH) and dogecoin (DOGE) seeing drops of up to 6%. However, tokens such as Trump-themed MAGA, MAGA HAT, and the Solana-based TREMP have all recorded double-digit gains this week. MAGA, the largest among them, surged by 55% on a weekly basis, with its market cap surpassing $200 million. MAGA HAT saw a 102% increase, while TREMP rose by 93%.
PoliFi tokens, including Trump-themed coins, gained traction earlier this year, enabling communities and traders to speculate on the performance of political figures using market mechanisms. On Polymarket, Trump’s odds of winning the U.S. presidential election climbed to a more than two-month high, with traders favoring the former president over Vice President Kamala Harris. Despite this, some market observers are awaiting broader economic data before making significant investment decisions.
In the broader crypto landscape, Uniswap’s native token UNI has seen a 10% increase following positive responses to the decentralized exchange’s rollout of its Layer-2 network on optimism. The CoinDesk 20 (CD20), tracking the largest digital assets, has remained relatively stable, showing a modest 0.5% uptick.
Amidst these developments, market participants in China anticipate a substantial fiscal stimulus of $283 billion (2 trillion yuan) over the weekend. Additionally, the PBoC has introduced a $70.6 billion fund known as the Securities, Funds, and Insurance Companies Swap Facility to support market stability by allowing financial institutions to pledge assets for liquid assets.
While recent Chinese stimulus measures have led to rallies in various assets, including bitcoin, the impact may not be sustainable according to a report from BCA Research. The new credit flow, or “credit impulse,” may not be robust enough to drive a significant economic boost similar to previous cycles. Traders are keenly observing how far the Chinese government will go with its stimulus initiatives before making strategic moves in the market.
