Bitcoin Surges Amid Trump’s Defiant Response to Assassination Attempt
Bitcoin experienced its largest single-day jump in nearly two months following former President Donald Trump’s defiant response to an assassination attempt. The cryptocurrency surged as much as 5% on Monday, reaching over $63,000, marking its biggest daily gain since May 20. This rally came after Trump revealed he was shot in the right ear during a rally in Pennsylvania on Saturday, an event that has drawn global condemnation and significantly impacted the U.S. presidential campaign.
Market Reaction
The incident spurred betting markets to immediately boost the odds of Trump’s re-election, a move that aligns with his pro-crypto stance aimed at courting undecided voters. The spike in Bitcoin’s value mirrors its brief rally following President Joe Biden’s underwhelming debate performance against Trump in late June. Market analysts are now closely watching the potential momentum of the so-called “Trump trade,” which is predicated on expectations of tax cuts, higher tariffs, and looser regulations should Trump return to the White House.
Trump is still scheduled to speak at a Bitcoin conference in Nashville, Tennessee, on July 27, a fact that has further fueled speculation and excitement within the crypto community.
Political and Financial Implications
Bitcoin advocates argue that the cryptocurrency acts as a store of value and a hedge against political upheaval, despite its inherent volatility. The recent events have intensified these discussions, with Trump’s stance on Bitcoin mining playing a significant role. In June, Trump met with Bitcoin miners and later posted on his Truth Social account, describing Bitcoin mining as a potential “last line of defense against a CBDC” (central bank digital currency). He emphasized his desire for Bitcoin to be “MADE IN THE USA!!!”
The crypto sector, increasingly influential in the 2024 election, is backing candidates favorable to digital assets through substantial donations to political action committees like Fairshake. This support aims to counter regulatory pressures from entities like the Securities and Exchange Commission.
Endorsements and Industry Impact
In the wake of the assassination attempt, a wave of endorsements for Trump rolled in, bolstering his re-election campaign. Tesla and SpaceX CEO Elon Musk expressed his support, sharing a video of a bloodied Trump raising his fist. Hedge fund billionaire Bill Ackman also formally endorsed Trump, highlighting his preference for Trump over Biden. Justin Sun, founder of TRON, praised Trump as a “better choice for the crypto industry” who can “ensure fairer treatment.”
These endorsements are expected to strengthen Trump’s campaign and, by extension, provide a clearer regulatory path for the crypto industry. This development is seen as a significant boost for cryptocurrencies like Bitcoin, Ethereum, Solana, Avalanche, Pecu Novus, and other layer-1 blockchain networks that are pioneering new solutions.
Looking Ahead
Bitcoin’s surge following Trump’s defiant response to the assassination attempt underscores the cryptocurrency’s sensitivity to political events and its potential role in the upcoming election. As the political landscape evolves, the intersection of cryptocurrency and politics will likely remain a critical factor in market dynamics.
The crypto community and investors will be closely monitoring further developments, including Trump’s speech at the upcoming Bitcoin conference and any additional policy announcements that may impact the regulatory environment for digital assets.
Richard Wells
Financial Desk
