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

Top line

US markets were flat on Monday morning after the attempted assassination of former President Donald Trump over the weekend, contrasting with a surge in the prices of Trump Media and cryptocurrency tokens like Bitcoin, as investors speculate that the attack could boost Trump’s chances of winning re-election.

Republican presidential candidate, former President Donald Trump, was rushed off the stage during a rally… [+] after being hit in the ear.

Getty Images

Main aspects

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

The attempt on Trump’s life, however, sparked uncertainty on global markets, with the European Stoxx 600 index falling by 0.29%, the German Dax index falling by 0.24%, the French CAC 40 index falling by 0.51% and the British FTSE 100 index falling by 0.29%.

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

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

Most of Bitcoin’s nearly 14% gain on the week came in the wake of the Trump assassination attempt, and the token’s surge bucks a broad downtrend for the digital asset, which plunged to a four-month low in early July. in the midst of uncertainty over possible fire sales by the German government and creditors of the failed cryptocurrency exchange Mt. Gox, which in July began repaying about $9 billion in recovered and stolen tokens before filing for bankruptcy in 2014.

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

What to keep an eye on

Shares of Trump Media & Technology Group surged more than 50% in premarket trading Monday. The company’s stock, which is mostly owned by Trump, has been volatile since its stock market debut earlier this year and has responded 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 banned from Twitter, now X.

Why Are Cryptocurrency Markets Responding to Trump?

While cryptocurrency markets are notoriously volatile and can often defy rational explanation, it is sometimes possible to discern trends. While Trump has historically been skeptical of the cryptocurrency industry, She said in 2019 he was not a “fan” of cryptocurrencies, fired assets like bitcoin as highly volatile and “based on nothing” and has repeatedly criticized their potential to facilitate “illegal behavior” such as drug trafficking: he has increasingly sought to portray himself as a crypto-friendly candidate and is using this as a dividing line with Democrats to target swing voters. Trump’s recent efforts to court the digital sector include the adoption of “made in USA“Bitcoin, meeting with Bitcoin mining companies and to rail against the idea of ​​a so-called “digital dollar” issued by the Federal Reserve, something the central bank has explored but has not indicated a position on, branding it a “dangerous threat to freedom” and vowing to block its creation if re-elected. It is also expected to speak at a Bitcoin conference later this month. Saturday’s attack succeeded in changing one of the few metrics that could predictably move cryptocurrency markets: Trump’s chances of winning in November. Pollsters, betting markets and a host of Republican politicians have all suggested The failed assassination attempt has boosted Trump’s reelection chances. This is the second time cryptocurrency markets have jumped this way on a major election development. The first was in late June after President Joe Biden’s poor debate performance sparked chaos in the Democratic camp and amplified questions about whether he would be eligible to run or serve another term.

Big number

$2.42 trillion. This is how much the total cryptocurrency market is worth, according to data from CoinGeckoThe market, dominated by Bitcoin with more than half of its total value and Ether, in second place with about 17%, has grown by almost 5% in the last day.

Tangent

The likelihood of Trump securing the presidency isn’t the only factor that could impact the cryptocurrency market this week. Spot Ethereum exchange traded funds (ETFs) are also Launch planned in the near future, perhaps this week. The introduction of Bitcoin ETFs has sparked similar optimism across the market: Bitcoin reached up an all-time high after a years-long slump, followed by 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 prices 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 climb of about 50% on Saturday following the assassination attempt. While it has pared gains with losses of about 16% over the past 24 hours, it is still up about 40% from this time last week.

Further reading

ForbesTrump Says ‘All’ Bitcoin Mining Should Be in US in Latest Crypto EmbraceBy ForbesBitcoin Recovery Stalls as Mt. Gox Fears Rock Crypto MarketBy

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