The attempted assassination of Donald Trump has rattled not just the political arena but also stirred significant turbulence in the cryptocurrency markets. Bitcoin (BTC), as reported by Santiment, surged to a 10-day peak of $60.3K in immediate response, paralleled by a remarkable 63% spike in the TRUMP token.
This swift reaction underscores a growing trend within the crypto community, which tends to react optimistically to news perceived as favorable to Trump. His recent endorsements of cryptocurrency have clearly resonated, establishing him as a proponent of the crypto sector. As the 2024 US presidential election looms closer, such sentiments are likely to amplify, particularly within this speculative market.
QCP, a prominent market analyst, noted that the failed assassination attempt over the weekend sparked a surge in crypto prices, notably during Monday’s Asia session. Unusual buying patterns were observed on Coinbase from 5 am to 1 pm SGT, a stark deviation for a typical Sunday evening in the US.
Investor sentiment appears to be factoring in the potential for a Trump victory in the upcoming election, drawing comparisons to Ronald Reagan’s popularity surge after a similar incident in 1981. This optimism has bolstered crypto prices, bolstered by Trump’s outspoken support for the industry.
Medium-Term Bullish Outlook On Bitcoin & ETH ETFs
Moreover, Market conditions were ripe for an upswing, with Germany depleting its reserves and major hedge funds aggressively purchasing calls the previous week. The assassination attempt on Trump served as a catalyst for a market already poised for bullish momentum.
The key question now is whether this bullish trend will endure as the crypto community closely monitors developments. Some institutional players have begun hedging their positions with imminent puts, suggesting downside risks. Speculation mounts that the US market could temper this surge, injecting further uncertainty.
Nevertheless, despite short-term fluctuations, a prevailing medium-term bullish outlook persists, buoyed by robust demand from Bitcoin spot ETF inflows and the anticipated launch of an ETH spot ETF, anticipated to drive market momentum in the coming months.
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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.
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