Markets
Bitcoin Jumps 2.7% to Reach 60,000 Level; What’s Driving the Rally?
Bitcoin has surpassed $60,000 after Donald Trump’s bold response to an assassination attempt, sparking speculation that his presidential election prospects have strengthened, according to a Bloomberg report.
The former president, known for his support of cryptocurrency, said he was shot in the right ear in 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, which begins Monday in Milwaukee.
“If the Trump assassination attempt has a positive impact on Bitcoin price, then it would be one of the most bizarre catalysts for the Bitcoin price surge. According to Polymarket, the chances of Trump becoming president have jumped to 70% after today’s incident. In the past few weeks, Trump has positioned 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 voter impulses and sentiment, but BTC would need stronger factors to support its price surge,” said Rajagopal Menon, VP of WazirX.
Data from PredictIt indicates that Donald Trump’s chances of winning the presidency again are increasing after today’s events. Images of Trump 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 said he was relieved that Trump was safe and strongly denounced the violence.
Markets are likely to react with increased volatility, perhaps reflecting moves seen in last month’s debate, which favored Trump. During that period, the U.S. dollar strengthened and Treasury yields rose.
“Following a recent downturn caused by uncertainty surrounding Mt. Gox’s BTC distribution and the German government’s Bitcoin sales actions, BTC has seen a significant decline over the past nine days, dropping from over $58,000 to just under $54,000. With no further sales expected from the German government, the absence of this downward pressure should pave the way for a potential upward move in Bitcoin’s price, a trend already underway as BTC surges above $60,000,” said Sumit Gupta, Co-Founder of CoinDCX.
Bitcoin jumped 2.7% to $60,160.71 as of 1:05 a.m. in New York. The leading cryptocurrency has stabilized recently, buoyed by optimism surrounding ETFs from big players such as BlackRock Inc. and Fidelity Investments, which are seen as a source of steady demand that can smooth out price swings.
Gupta added: “As economic indicators point to a likely interest rate cut by the Federal Reserve, investors are expected to increase their interest in Bitcoin as an inflation hedge. Despite recent inflationary pressures as indicated by the Producer Price Index (PPI), Bitcoin’s upward trajectory confirms its status as a preferred alternative asset.”
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