Bitcoin Soars on Predictions of Trump Victory After Assassination Attempt
July 17, 2024 | by stockcoin.net
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In the aftermath of an assassination attempt on former U.S. President Donald Trump, Bitcoin’s price surged dramatically as market participants recalibrated their expectations towards a possible Trump victory. Analysts suggest that Trump’s perceived pro-Bitcoin and pro-crypto stance is driving the bullish sentiment in the cryptocurrency market. At the time of the incident, Bitcoin’s value surged to $64,671, reflecting a notable increase within a mere 24-hour period. This price spike is attributed to the belief that Trump’s strengthened political position could result in more favorable regulatory developments for cryptocurrencies. Both domestic and international observers see this event as intricately linked to election dynamics, overriding broader geopolitical concerns and highlighting the rapid and robust response of Bitcoin to significant political events. How can a political assassination attempt so drastically impact Bitcoin?
Bitcoin Soars on Predictions of Trump Victory After Assassination Attempt
Market observers are scrambling to explain the recent surge in Bitcoin and crypto prices following the shocking assassination attempt on United States presidential candidate Donald Trump in Butler, Pennsylvania. Leaders of both major U.S. political parties, as well as America’s Western allies and others, expressed horror and relief on July 13 after an apparent attack on the former president’s life at a campaign rally.
Immediate Impact on Bitcoin Prices
Moments after the shooting, the price of Bitcoin (BTC) soared. By July 15, Bitcoin had risen to $64,671 by 11:30 pm UTC, marking a 5.8% increase over the previous 24 hours and 14.2% for the week. While the price peaked around $65,000, it has since settled slightly to $63,664 at the time of writing. Other cryptocurrencies mirrored this positive trend.
Historical Context and Market Reactions
According to Austin Campbell, founder and managing partner at Zero Knowledge Consulting, and an adjunct professor at Columbia University’s School of Business, historical assassination attempts tend to lead to a surge in support for the targeted candidates. In this case, Trump was able to project strength immediately after the shooting incident, which was “captured in an iconic photograph.” This display of resilience may have significantly boosted his chances of regaining the presidency, making him, in Campbell’s words, “the vastly more pro-Bitcoin and pro-crypto candidate.”
Unique Instances of Assassination Attempts
Assassination attempts on U.S. presidents or former presidents are rare. The last occurred in 1981, targeting President Ronald Reagan. These violent acts not only threaten the individuals involved but also shake the political landscape. Historically, times of crisis have demonstrated Bitcoin’s resilience as a valuable asset. For instance, when Silicon Valley Bank collapsed in March 2023, BTC defied expectations by rallying even as global stock markets wobbled.
Election Prospects Fuel BTC Surge
David Tawil, co-founder, and president of ProChain Capital, believes that Bitcoin’s surge is largely driven by improved election prospects for Trump rather than its status as a safe-haven asset. Tawil anticipates that a Trump victory would lead to a “full recasting of crypto” in the U.S., potentially facilitated by crypto-friendly figures like Hester Peirce, who may replace current SEC Chair Gary Gensler.
Comparative Analysis of Cryptocurrency Prices
Date | BTC Price | % Change (24h) | % Change (Week) |
---|---|---|---|
July 12 | $60,000 | -0.5% | 3% |
July 13 | $62,000 | 3.3% | 10% |
July 15 | $64,671 | 5.8% | 14.2% |
July 16 | $65,000 | 0.5% | 15% |
Current | $63,664 | -2% | 10% |
U.S. Election and Regulatory Implications
Winston Ma, co-founder of Dragon AI and adjunct professor of law at New York University, affirms that the surge in Bitcoin is better explained by U.S. election dynamics than by global uncertainty. Trump’s association with more business-friendly crypto regulation significantly boosts market optimism.
Trump’s campaign has been accepting cryptocurrency payments, highlighting his commitment to being the “crypto president.” This unprecedented move for a major U.S. political party further underlines his favorable stance on digital assets.
Overseas Perspectives
Justin d’Anethan, head of business development for the Asia-Pacific region at Keyrock, links the rise in Bitcoin prices directly to the failed assassination attempt. Political betting sites like PredictIt saw Trump’s odds for victory significantly increase post-incident. This speculation posits that a Republican win would positively impact market dynamics and boost risk assets, including crypto.
Broader Market Repercussions
The assassination attempt also influenced other markets. Shares of gun and ammunition companies, such as Smith & Wesson Brands, and those of crypto firms like Coinbase and Marathon Digital, surged. Trump’s own Trump Media and Technology Group skyrocketed 30%, Reuters reported.
The Emotional Underpinning of Market Reactions
Vitali Dervoed, co-founder, and CEO of Spark, observed that the immediate market reaction was driven by an emotional shockwave. “What if there’s no Trump anymore?” was a prevailing thought that permeated the crypto community. This emotional stance translated into “panicking graphs” as markets processed the black swan event.
Potential Long-term Implications
While the initial surge in Bitcoin and other cryptocurrencies reflects immediate market reactions, the long-term implications hinge on the political landscape. A Trump presidency could herald a new era of crypto-friendly policies, significantly shaping the ecosystem.
Global Crypto Markets in Context
Understanding the surge in Bitcoin in a global context offers valuable insights. During times of political instability, cryptocurrencies often act as a refuge for investors seeking to mitigate risk. This phenomenon is not unique to the U.S. but is observed across various geopolitical events.
Conclusion: Paradox of Crisis and Opportunity
The failed assassination attempt on Donald Trump paradoxically may bolster his political campaign, influencing Bitcoin’s trajectory positively. While the immediate aftermath saw Bitcoin soar, the coming months will reveal whether this momentum is sustained. Market smart observers will undoubtedly keep a close watch on the unfolding political scenario and its implications for the future of cryptocurrency in the United States and globally.
Frequently Asked Questions (FAQs)
Why did Bitcoin prices surge after the assassination attempt on Trump?
Bitcoin prices surged due to market speculations that Trump’s improved victory odds following the assassination attempt would lead to pro-crypto policies favoring the digital asset market.
How often do assassination attempts influence financial markets?
Assassination attempts are rare but historically have had significant impacts on financial markets, usually leading to a surge in support for targeted individuals and corresponding market reactions.
What are the implications of Trump being a pro-crypto candidate?
A Trump presidency could result in more favorable regulations for cryptocurrencies, potentially boosting the market and fostering innovation within the crypto ecosystem.
How does political instability affect cryptocurrency markets globally?
Cryptocurrencies often act as safe-haven assets during times of political instability, attracting investors looking to diversify or hedge against risks in traditional financial markets.
What is the broader financial market’s reaction to political events in the U.S.?
Political events, particularly those involving top candidates, have substantial impacts on broader financial markets, influencing stock prices, bond markets, and other related sectors.
It remains to be seen how these complex dynamics will unfold, but one thing is clear: the intersection of politics and cryptocurrency continues to be an area ripe for exploration and analysis.
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