Bitcoin exceeded $62,000 after Donald Trump’s defiant response to an assassination attempt spurred speculation that the pro-crypto former president’s chances of winning reelection have climbed.
The largest digital asset rose as much as 4.5% on Monday and traded at $62,738, the highest level in more than a week. Smaller tokens also rose, with second-ranked Ether up about 4.2%.
Trump said he was shot in the right ear after gunfire erupted at a rally in Pennsylvania on Saturday, an episode that sparked global condemnation of political violence and shook the US presidential campaign.
Some analysts anticipate sympathy and anger over the incident will likely galvanize support for the presumptive Republican presidential nominee, who said he was “fine” after the incident and looking forward to going to the Republican National Convention that begins on Monday in Milwaukee.
One key question in global markets now is whether the so-called Trump trade will gain momentum, based on the argument that his return to the White House would usher in tax cuts, higher tariffs and looser regulations.
Trump has also increasingly embraced the crypto industry in a bid to court voters. Last week the organizers of a Bitcoin conference due to be held in Nashville, Tennessee on July 27 said he’s scheduled to address the event.
Bitcoin “gained momentum” after the attempted assassination bolstered Trump’s chances of reelection, Tony Sycamore, market analyst at IG Australia Pty, wrote in note.
Supporters of the original cryptocurrency argue it acts as a store of value and hedge against political upheaval, a contentious claim given its inherent volatility.
Meeting Miners
Trump in June met with Bitcoin miners and in a subsequent post on his Truth Social account said Bitcoin mining may be “our last line of defense against a CBDC,” referring to a central bank digital currency. He added that he wants all remaining Bitcoin to be “MADE IN THE USA!!!”
The crypto sector is trying to bolster candidates seen as favorable to digital assets, including through big donations to the Fairshake political action committee. The industry has emerged as an influential player in the 2024 election in part to push back against a regulatory clampdown spearheaded by the Securities and Exchange Commission.
Trump’s campaign accepts donations in digital assets and a person familiar with the matter earlier said Trump discussed crypto policy with billionaire Elon Musk.
Bitcoin hit a record high of almost $74,000 in March, fueled by demand for dedicated US exchange-traded funds. The token then slipped back amid moderating inflows, apparent sales of seized tokens and fears of disposals by creditors of the failed Mt. Gox exchange.
