Bitcoin
Bitcoin Mining Stock Analyst Discusses ‘Trump Bump’
Analysts at HC Wainwright believe the market’s positive reaction to cryptocurrencies suggests increased confidence in Republican presidential candidate Donald Trump’s electoral prospects.
This confidence comes because Trump is known for his pro-crypto stance, particularly his support for Bitcoin (BTC) mining in the USA
After a failed assassination attempt about Trump during a campaign rally in Butler, Pennsylvania, on Saturday, July 13, Bitcoin and BTC mining stocks saw a notable surge. BTC has surged more than 9% since the incident, reaching a high of approximately $63,790 on Monday, while mining stocks gained about 10% in Monday’s session.
“Many believe the tragic event immediately boosted Trump’s chances of winning the election in November, and since Trump is widely seen as the pro-crypto candidate who has come out and publicly supported Bitcoin mining in the U.S., markets rallied after the failed attempt,” wrote Mike Colonnese, CFA.
Selling pressure
This price increase coincides with the end of the selling pressure of German governmentwho liquidated his remainder 50,000 BTC seized from the Movie2k case. The glut in BTC prices has been alleviated, with US spot BTC ETFs seeing over $1 billion in net inflows last week, acquiring over 18,000 BTC.
Furthermore, the high selling pressure in the chain was partially due for the beginning of the long-awaited Mount Gox Refunds. In 2010, Mt. Gox became the world’s largest Bitcoin exchange, but faced a significant setback in 2014 when it halted trading, filed for bankruptcy, and disclosed the loss of approximately 850,000 BTC due to theft. Recently, the movement of 47,228 BTC from a cold wallet associated with Mt. Gox triggered market reactions, while selling pressure from miners continues to weigh on prices following a recent halving that reduced mining rewards by 50%.
Hash rate increase
In the week ending July 7, BTC rose 8.7% to $61,015, outperforming broader equity indices. The network hash rate increased by 2.7% to 598 EH/s, while the network difficulty remained at 79.5T after a 5% adjustment on July 4.
Source: HC Wainwright company archives.
Higher BTC prices offset lower transaction fees, pushing hashrate prices up 5.2% to $0.049/TH/day, reclaiming the $0.05/TH/day mark for the first time in three weeks.