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Cryptocurrency Stocks Are Rising. It’s Because of Trump, Experts Say
The attempted assassination of former US President Donald Trump at a campaign rally in Pennsylvania over the weekend has sent cryptocurrency and crypto stock prices soaring. Some experts say this is because investors are betting on Trump.
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Two days after the assassination attempt, Bitcoin rose more than 10% in a week and more than 5% in a day, reaching around $63,000. Other cryptocurrencies followed Bitcoin’s lead, with Ether, the second-largest cryptocurrency by market cap, rising more than 10% in the past week, with a jump of more than 5% in a day, traded at $3,300. Other major cryptocurrencies such as Solana and Dogecoin have seen an increase in value of 5.4% and 4.8% respectively, in just one day.
In a similar trend, shares of cryptocurrency companies surged on Monday. In the afternoon, shares of MicroStrategy, the largest corporate owner of Bitcoin that holds 1% of all Bitcoin in circulation, jumped more than 15% to trade at $1,609. Coinbase, the largest cryptocurrency exchange in the United States, saw its share price rise more than 12%. Shares of Bitcoin mining companies such as Marathon Digital Holdings and Riot Platforms each rose more than 15%, with Hut 8 Mining rising more than 19%.
Pat Doylea Blockchain Researcher at Amberwrote in an email to Quartz that Trump has emerged as a leader in the cryptocurrency space, and the market reaction is quite clear. “The market response to the recent failed assassination attempt underscores investors’ strong confidence in Trump’s prospects of winning the next election,” he said.
This election year, Trump declared himself a “crypto candidate” at a gala at Mar-a-Lago and announced that he would accept Donations in Bitcoin, Ether, Dogecoin, Solana and other cryptocurrencies. He no longer considers cryptocurrencies a scam as he did in the past.
Second Sam Callahansenior analyst at financial services firm Bitcoin Bitcoin SwanThe Republican Party’s pro-Bitcoin stance has benefited the cryptocurrency market and cryptocurrencies in general. He’s keeping an eye on the upcoming Bitcoin Conference, where Trump will speak for the first time.
“If Trump talks about Bitcoin’s potential as a Treasury reserve asset, this could be a pivotal moment for Bitcoin adoption in the US,” he wrote in an email.
Crypto and Trump are now very close and there is no doubt that cryptocurrencies will be a key player in this election. The assassination attempt on the former president is seen as an increase in the chances of the Republican candidate winning the presidential election. The crypto community is excited because they believe it will be beneficial if Trump is elected. The primary elections, national conventions, and presidential debates will also play a significant role in determining how the crypto community will react.
In the meantime, PredictIt, an online betting site, has increased bets on Trump’s election victory from 60 cents on Friday to 67 cents, while Joe Biden’s odds were 27 cents.