Trump Media Stocks Soar, Bitcoin Tops $63K After Assassination Attempt

Top line

U.S. markets were flat Monday morning after the assassination attempt of former President Donald Trump over the weekend, in contrast to the surge in prices of Trump media and cryptocurrency tokens like Bitcoin, as investors speculate the attack could improve Trump’s chances of winning re-election.

Former President Donald Trump, a Republican presidential candidate, was rushed off stage at a rally… [+] after being shot in the ear.

Getty Images

Highlights

U.S. stock futures were little changed after Trump was shot in the ear at a campaign rally in Pennsylvania on Saturday, with Dow Jones futures climbing 0.58%, S&P 500 futures climbing 0.43% and Nasdaq futures climbing 0.5% before markets opened early Monday morning.

The attempted assassination of Trump, however, sparked uncertainty in global markets, with Europe’s Stoxx 600 index falling 0.29%, Germany’s Dax index falling 0.24%, France’s CAC 40 falling 0.51% and Britain’s FTSE 100 falling 0.29%.

Market reactions were more mixed. Asia Pacific—where China also released weak GDP data—with Japanese markets closed for a public holiday, Hong Kong’s Hang Seng index down 1.52% and the Shanghai Composite largely flat at market close.

Meanwhile, the price of Bitcoin surged to more than $63,000 on Monday, up nearly 5% from the previous day and a two-week high for the world’s largest cryptocurrency.

Most of Bitcoin’s nearly 14% gain for the week came after the attempted assassination of Trump, and the token’s rise bucks a broader downward trend for the digital asset, which fell to a four-month low in early July. in the midst of uncertainty about potential sales by the German government and creditors of the bankrupt cryptocurrency exchange Mt. Gox, which in July began repaying about $9 billion in recovered tokens stolen from it before it filed for bankruptcy in 2014.

Prices of other popular digital assets have also soared following the Trump assassination attempt, with Ether, Binance’s BNB, Solana’s Sol and Dogecoin all up between 4% and 6% from the previous day as of 4:30 a.m. EST Monday and weekly gains between 11% and 17%.

What should you pay attention to?

Shares of Trump Media & Technology Group jumped more than 50% in premarket trading Monday. Shares of the company, which is majority-owned by Trump, have been volatile since going public earlier this year and have reacted to developments surrounding the former president, including his criminal convictions and trials. The company owns Truth Social, an alternative social media platform used and promoted by Trump after he was kicked off Twitter, now X.

Why Are Cryptocurrency Markets Reacting to Trump?

While cryptocurrency markets are notoriously volatile and can often defy rational explanation, it is sometimes possible to discern patterns. While Trump has always been skeptical of the cryptocurrency industry, he said he was “not a fan” of cryptocurrencies in 2019, dismissed He has called assets like bitcoin highly volatile and “based on hot air” and has repeatedly decried their potential to facilitate “illegal behavior” like drug trafficking. He has increasingly sought to present himself as a pro-cryptocurrency candidate, using that as a dividing line with Democrats to target swing voters. Trump’s recent efforts to court the digital sector include adopting “made in the usa“Bitcoin, meeting with Bitcoin mining companies and rebelling against the idea of ​​a so-called “digital dollar” issued by the Federal Reserve, an idea the central bank has explored but has not indicated a position on, calling it a “dangerous threat to liberty” and vowing to block its creation if re-elected. expected Saturday’s attack managed to change one of the few parameters that could move crypto markets in predictable ways: Trump’s chances of winning in November. Pollsters, betting markets, and a range of Republican politicians have all suggested The failed assassination attempt has bolstered Trump’s reelection chances. This is the second time that cryptocurrency markets have surged in this way following a major election event. The first time was in late June, after President Joe Biden’s disappointing debate performance sparked chaos in the Democratic camp and amplified questions about his ability to run or serve another term.

Large number

$2.42 trillion. That’s the total value of the cryptocurrency market, according to data from CoinGeckoThe market, dominated by Bitcoin at more than half of its total value and Ether, far behind at around 17%, rose by almost 5% over the past day.

Tangent

The likelihood of Trump winning the presidency isn’t the only factor likely to affect the cryptocurrency market this week. Spot Ethereum exchange-traded funds (ETFs) are also should be launched in the near future, perhaps this week. The introduction of Bitcoin ETFs has sparked similar optimism across the market: Bitcoin reached an all-time high after a multi-year decline following a “crypto winter” and a series of scandals following their introduction – and Ether ETFs could help inspire a broader rally, as well as push the token’s price higher.

Surprising fact

There is a crypto token inspired by Donald Trump, MAGAwith a market cap of nearly $400 million on Monday. The meme altcoin made a near-vertical ascent of about 50% on Saturday following the assassination attempt. Although it has pared its gains with losses of about 16% in the last 24 hours, it is still up 40% compared to the same period last week.

Further reading

Trump says ‘all’ Bitcoin mining should be done in the US in latest embrace of cryptocurrency ForbesBitcoin Recovery Stalls as Mt. Gox Fears Rock Crypto MarketBy

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