Recently, the attempted assassination of Donald Trump has sent shockwaves through not only the political landscape but also the cryptocurrency markets. According to data from Santiment, Bitcoin (BTC) experienced a significant surge, reaching a 10-day high of $60.3K, while the TRUMP token skyrocketed by 63% as the news spread.
This immediate reaction highlights a trend that has been building within the crypto community, which tends to respond bullishly to news perceived as favorable to Trump. The former president’s recent comments in support of cryptocurrency have clearly resonated, positioning him as a pro-crypto figure. As the 2024 US presidential election draws nearer, such sentiments are likely to intensify, especially within this highly speculative sector.
Programmatic Buying Drives Bitcoin Surge
Another prominent market analyst, QCP, reported that the failed assassination attempt at the start of the weekend ignited a rally in crypto prices, particularly noticeable during the Monday Asia session. This surge was driven by aggressive programmatic buying of Bitcoin on Coinbase from 5 am to 1 pm SGT—a highly unusual pattern for a Sunday evening in the US.
The market appears to be pricing in a potential Trump victory in the upcoming election, drawing parallels to Ronald Reagan’s popularity surge following a failed assassination attempt in 1981. This sentiment has buoyed crypto prices, given Trump’s overtly pro-crypto stance.
Market conditions were already ripe for a rally. The German government had exhausted its supply, and large hedge funds had been aggressively buying calls the previous week. The assassination attempt on Trump acted as the perfect catalyst for a market poised for a bullish run.
The question remains: will this bullish momentum be sustained as the crypto world watches keenly? A few institutional players have begun hedging their bets through buying puts that expire soon, indicating a downside risk. There is speculation that the US market might fade this move, adding a layer of uncertainty.
However, despite these short-term fluctuations, a medium-term bullish outlook prevails because of the continued huge demand from Bitcoin spot ETF inflows and the anticipated launch of ETH spot ETF. These are expected to be major catalysts that would push forward the market in the next months.
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