Cryptocurrency prices continued to rise on Monday after the assassination attempt on former President and Republican candidate Donald Trump last weekend. The rally comes amid growing optimism among supporters that Trump, who has positioned himself as a champion of cryptocurrencies, will reclaim the White House in November.
But are the long-term increases seen in the broader cryptocurrency world a direct result of Trump’s support for the alternative payment method — or is he riding a larger wave and taking credit for some of these increases in the process?
While Trump’s support has certainly galvanized crypto enthusiasts, it’s likely not the only reason behind the gains.
Both Bitcoin and Ethereum have seen gains of around 45% since the start of the year. These jumps, as well as those of many smaller cryptocurrencies, are due to a number of factors, primarily some major regulatory victories for cryptocurrencies.
In January, nine Bitcoin-based exchange-traded funds (ETFs) hit the market, opening up cryptocurrency trading to a whole new audience from traditional finance names like BlackRock. In May, the Securities and Exchange Commission approved a proposal to create an Ether-based ETF. Ether-based ETFs (which would hold Ether tokens directly) are likely to go public. Start trading next week.
In April, Bitcoin experienced an event where the number of new coins entering the market was reduced by 50%, an event that occurs once every four years. This creates scarcity because it reduces the rate at which new bitcoins enter the market.
Bitcoin hit a record high in mid-March but has struggled since then, in part due to the dumping of tokens from the Mt. Gox exchange in Japan. The sell-off was blamed for the slump a week ago. Of the Bitcoins Seized by the German Government.
However, market watchers say Trump’s strong support for cryptocurrencies cannot be ruled out as a factor in the current rally.
Trump has been less reserved about embracing cryptocurrencies. In fact, [his] “The political campaign is the first to accept donations in cryptocurrency,” says Ramnath Chellappa, a professor at Emory University’s Goizueta School of Business. Fast company“There is no other explanation for these abnormal returns than the support provided by Trump. You can compare this to returns in the stock market, commodity prices, and other indicators. But no other asset has responded in this way.”
Since the moment Trump was shot on Saturday evening, the price of the cryptocurrency has risen by about 9% — and is currently at more than $64,000.
The recent surge in cryptocurrency prices also comes as the dollar has lost strength. The US Dollar Index (DXY) has been showing fairly steady declines since the end of June – a weaker dollar often drives investors into the crypto market.
Representatives from several crypto companies are: It is said that he attended The Republican National Convention this week in Milwaukee, where Trump is seeking political support. He is also scheduled to speak. At the Bitcoin conference, which will be held in Nashville from July 25 to 27. Officials say they are in active talks with their own security teams as well as the Secret Service about security at the event.
The bigger question is whether Trump will use this forum as a starting point for a detailed proposal about what his administration will do regarding cryptocurrency regulation, an area he has yet to address.
“in order to [former] “It is very significant that the US president publicly supports a non-US monetary instrument,” Chellappa says.
But Rajiv Garg, a colleague of Chellappa’s, isn’t so sure that the rise in Bitcoin and other cryptocurrencies is tied to Trump (or the assassination attempt). What we may see, Garg says, is investors returning to cryptocurrencies because of the overall uncertainty about future rallies.
“If the stock market becomes more volatile, cryptocurrencies become a haven for investors,” he said. Fast company“Similarly, if there is potential government unrest, cryptocurrency holders are more likely to hold onto their digital assets. Price action is driven by market perception and sentiment towards all different assets. Cryptocurrencies are typically viewed as unregulated and decentralized digital investment vehicles. Therefore, shocks in financial markets, society, or politics are expected to impact price action.”
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