Bitcoin Surges as Market Confidence Grows in Pro-Crypto Trump Election Win
Bitcoin reached a two-week peak on Monday, with speculation in betting markets pointing to increased odds of a win for pro-crypto candidate Donald Trump in the U.S. presidential race. The value of bitcoin, the largest cryptocurrency globally, surged by approximately 4% at 12:25 p.m. London time, hitting $62,462.46, as reported by CoinGecko.
This surge in value comes on the heels of a failed assassination attempt on former President Trump over the weekend. Ben Emons, chief investment officer at FedWatch Advisors, drew a comparison to the 1981 shooting of President Reagan, noting that despite not being an election year, Reagan’s popularity soared following the incident amid an economic downturn. Emons expressed optimism that in the current robust economic climate, Trump’s favorability could experience a similar boost, positively impacting the markets.
Investors anticipated a surge in “Trump victory trades” following the weekend incident, with various crypto stocks like Coinbase Global and Riot Platforms witnessing gains of 4.5% and 5.25%, respectively, in premarket trading. While Trump has not outlined detailed plans regarding cryptocurrency regulation, his stance has shifted to being more supportive of the sector, despite previous reservations.
The Trump campaign started accepting crypto industry donations in May, signaling a shift in messaging towards digital assets’ future potential. Trump has positioned himself against Democratic figures advocating for stricter regulations in the sector, such as Senator Elizabeth Warren. Notably, Trump is scheduled to address a prominent annual bitcoin conference later this month.
Analysts at Standard Chartered previously highlighted the U.S. presidential election as a pivotal factor influencing bitcoin’s price trajectory, suggesting that a Trump victory could propel it to as high as $150,000 by year-end. Grzegorz Drozdz, a market analyst at Conotoxia, emphasized the potential for increased market confidence with a higher likelihood of a Trump presidency, which could bode well for crypto and bitcoin in the near term.
