Markets
Bitcoin traders see Trump victory as potential market boost – FT
Former president Donald Trump A potential return to the White House is expected to trigger a significant increase Bitcoin value, the Financial Times reported on July 5, citing various analysts.
According to the FT, the concept of the “Trump trade” is gaining traction among cryptocurrency traders due to the former president’s “perceived pro-cryptocurrency stance and policies.”
The recent performance of the flagship cryptocurrency has been hampered by sales minors and regulatory movements by the American and German authorities. Early repayments of the Mount Gox Bankruptcies also contributed to market volatility, causing Bitcoin to plummet fall below $54,000 for the first time in months.
However, analysts Stay optimistic that a Trump victory could lead to a significant rise in Bitcoin, potentially reaching a new all-time high in August and $100,000 by Election Day.
At press time, Bitcoin had rebounded slightly and was trading just above $56,000, according to data from CryptoSlate.
Trump: The Bitcoin Defender
According to the report, industry executives hope that a Trump administration, coupled with a strong Republican presence in Congress, will foster a more favorable regulatory environment for cryptocurrencies.
Donald Trump has recently emerged as a strong supporter of the crypto industry. He recently hosted executives in the cryptocurrency mining sector at his Mar-a-Lago estate and has begun accepting campaign contributions in digital assets. The former president has made several positive statements about crypto in recent weeks, including rumors that he is considering adopting Bitcoin as a currency country’s reserve assets.
Market analysts suggest that Trump pro-crypto position This could significantly boost Bitcoin’s appeal, potentially sending its price to unprecedented levels. Some market watchers are even predicting that Bitcoin could hit $100,000 by Election Day if Trump wins, according to the report.
The potential Trump presidency also raises broader questions about financial markets. Policies planned under Trump, such as tightening immigration controls, increasing tariffs and tax cuts, are expected to swell the U.S. deficit, leading to higher inflation and Treasury yields.
Geoff Kendrick, head of digital asset research at Standard Chartered, noted that Trump’s policies could lead to “fiscal dominance,” in which large government deficits and debts undermine the Fed’s ability to control inflation.
Kendrick believes that such a scenario could benefit Bitcoin’s price, given its correlation with key U.S. Treasury indicators. He added that a steeper curve and higher breakeven rates than real yields would likely push Bitcoin prices higher, positioning it as a hedge against loss of confidence in the U.S. Treasury market.
An uncertain political landscape
According to the FT, if it becomes clear by the end of July that the president Joe Biden will run for re-election, the likelihood of a Trump victory will increase, potentially pushing Bitcoin to new highs.
However, the report adds that the “Trump trade” largely depends on whether Biden is Trump’s opponent in November. According to RealClearPolitics’ betting average, Trump currently has a 55% chance of winning, while Biden has a 16.5% chance.
This indicates that as long as Biden remains in the race, Bitcoin supporters are likely to feel optimistic. On the other hand, if Biden steps down and a new candidate, seen as having a competitive advantage over Trump, steps in, Bitcoin’s momentum could falter.
Betting markets, such as Polymarket, saw substantial bets on Biden dropping out of the race, with over $11 million placed on that outcome.
Bitcoin Market Data
At the time of going to press, July 5, 2024 at 22:52 UTC, Bitcoin is ranked #1 by market capitalization and the price is down 2.85% over the past 24 hours. Bitcoin has a market cap of $1.12 trillion with a 24-hour trading volume of $57.17 billion. Learn more about Bitcoin ›
Cryptocurrency Market Summary
As of press time at 22:52 UTC on July 5, 2024, the total cryptocurrency market is valued at $2.07 trillion with a 24-hour volume of $135.31 billionBitcoin dominance is currently at 53.99%. Learn more about the cryptocurrency market ›