Bitcoin
Bitcoin Surges 2.7% to 60,000 Level Again; What’s Driving the Rally?
Bitcoin surged above $60,000 after Donald Trump’s bold response to an assassination attempt, prompting speculation that his presidential election prospects have strengthened, according to a report from Bloomberg.
The former president, known for his support of cryptocurrency, reported being shot in the right ear during a shooting at a political rally in Pennsylvania on Saturday. His campaign assured the public of his well-being, confirming that he was “fine” and looking forward to attending the upcoming Republican National Convention that begins Monday in Milwaukee.
“If the Trump assassination attempt positively impacts the price of Bitcoin, then it would be one of the most bizarre catalysts for the price of Bitcoin to rise. According to Polymarket, the chances of Trump becoming president have shot up to 70% after today’s incident. In the past few weeks, Trump has been positioning himself as pro-crypto. Crypto markets are also relieved by the news that Germany has finished selling its Bitcoin. So overall, these are interesting developments based on momentum and voter sentiment, but BTC would need stronger factors to support its price rise,” said Rajagopal Menon, VP, WazirX.
Data from PredictIt indicated an increase in the odds of Trump winning the presidency again following today’s events. Images of Trump defiantly raising his fist with a bloodied right ear, against the backdrop of the American flag, have gone viral on social media and television since the incident.
President Joe Biden expressed relief that Trump was safe and strongly denounced the violence.
Markets are expected to react with increased volatility, possibly mirroring the trading seen during last month’s debate, which favored Trump. During that period, the U.S. dollar strengthened and Treasury yields rose.
“Following a recent slowdown driven by uncertainty surrounding Mt. Gox’s BTC distribution and the German government’s Bitcoin liquidation actions, BTC has seen a significant drop over the past nine days, falling from over $58,000 to just under $54,000. With no further liquidations expected from the German government, the absence of this downward pressure is expected to pave the way for a potential upward movement in Bitcoin’s price, a trend already underway as BTC surges past $60,000,” said Sumit Gupta, Co-Founder of CoinDCX.
Bitcoin rose as much as 2.7% to $60,160.71 as of 1:05 a.m. in New York. The leading cryptocurrency has stabilized recently, driven by optimism around ETFs from major players such as BlackRock Inc. and Fidelity Investments, which are seen as providers of stable demand that can mitigate price swings.
Gupta further added, “As economic indicators point to a likely interest rate cut by the Federal Reserve, there is heightened anticipation of increased investor interest in Bitcoin as an inflation hedge. Despite recent inflationary pressures indicated by the Producer Price Index (PPI), Bitcoin’s upward trajectory confirms its status as a favored alternative asset.”
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