In a dramatic turn of events, bitcoin surged past the $60,000 mark after an assassination attempt on former U.S. President and 2024 presidential candidate Donald Trump.
This rise in bitcoin’s value has been attributed to Trump’s defiant response to the incident, which has increased speculation about his chances of winning the upcoming presidential election.
Trump assassination incident occurred during a campaign rally at the Butler Farm Show in Butler, Pennsylvania. Trump was shot in the right ear by an assailant identified as Thomas Matthew Crooks, who was subsequently shot and killed by security officials.
Despite the injury, Trump’s campaign quickly assured the public of his well-being, stating that he was “fine” and eager to attend the Republican National Convention in Milwaukee.
Images of Trump with a bloodied ear, his fist raised defiantly, and the American flag in the background quickly spread across social media and news outlets. This display of resilience has not only captivated the public but also significantly boosted his political odds.
Following the incident, prediction markets like PredictIt and Polymarket saw a notable increase in Trump’s chances of winning the 2024 presidential election.
Polymarket, a platform that allows users to bet digital assets on various outcomes, reported a jump in Trump’s odds to 70%, while President Joe Biden’s odds dropped to 16%.
Rajagopal Menon, VP at WazirX, commented on the unusual catalyst for bitcoin’s price surge:
“If the assassination attempt on Trump positively impacts bitcoin’s price, then it would be one of the most bizarre catalysts for bitcoin’s price surge.”
He added: “The markets are also relieved by the news that Germany has finished selling its Bitcoin. So overall, these are interesting developments based on impulses and voter sentiment but BTC would need stronger factors to back its price surge.”
One of the key reasons behind the positive reaction from the market is Trump’s well-known support for Bitcoin.
In recent months, Trump has positioned himself as a pro-Bitcoin candidate, promising to support the right to self-custody and to ensure that the future of Bitcoin is made in the U.S.
Related: Donald Trump’s Bitcoin Bet Marks A New Chapter in American Politics
During an event in Washington, D.C., Trump stated, “I will make sure that the future of bitcoin will be made in the U.S. and not driven overseas. I will support the right to self-custody.”
He has also accepted campaign donations in various digital assets, including bitcoin, highlighting his commitment to the digital asset community.
According to a Reuters report, Trump actively promoted digital assets at a Silicon Valley fundraiser last month, hosted by investors David Sacks and Chamath Palihapitiya.
“He declared he would be the crypto president,” stated Trevor Traina, a San Francisco tech executive and former Trump ambassador to Austria.
After recent events, bitcoin’s price surged as much as 5.6%, surpassing $62,000.
Sumit Gupta, co-founder of CoinDCX, commented on the recent market dynamics. He explained:
“Following a recent downturn driven by uncertainty surrounding the Mt. Gox BTC distribution and the actions of the German government’s Bitcoin sell-off, BTC experienced a significant slump over the past nine days, dropping from over $58,000 to just under $54,000.“
Sumit stated that since the German government is not expected to sell more bitcoin, the price is likely to rise, as it has already surpassed $60,000.
He also mentioned that anticipated interest rate cuts by the Federal Reserve could increase investor interest in bitcoin as a hedge against inflation. Amid recent inflationary pressures, bitcoin continues to gain popularity as an alternative asset.
The resurgence of bitcoin comes after a period of volatility, where it had dropped from over $63,000 to just under $54,000.
Analysts believe that the optimism surrounding Trump’s pro-Bitcoin stance and the stabilization provided by potential ETFs from major players like BlackRock and Fidelity Investments contributed to this upward trend.
Trump’s increasing odds of winning the presidency are seen as a potential boon for the Bitcoin market. Standard Chartered has suggested that a Trump victory could boost bitcoin’s value due to his Bitcoin-friendly approach, in stark contrast to the current administration’s stance.
President Joe Biden expressed relief that Trump was safe and condemned the violence, a sentiment echoed by many political figures.
However, the incident has undeniably shifted the political landscape, with Trump’s defiant response strengthening his position among supporters and investors alike.
Looking ahead, the Bitcoin market is expected to experience increased volatility as the political scenario unfolds. Analysts suggest that Bitcoin could see further gains if Trump’s campaign continues to emphasize his pro-digital-asset stance.
