Odds of Trump victory after shooting and running mate selection should boost Bitcoin
BITCOIN experienced a significant surge on Monday, rising more than 10% to $63,595, its highest level in two weeks.
This spike followed an assassination attempt on Republican presidential nominee Donald Trump, which intensified traders’ confidence in the former president's chances of winning the November presidential election.
The market is boosted as Trump is seen as a more pro-crypto candidate, largely due to his vocal support for US-based Bitcoin mining and close relationships with industry leaders.
The former president’s commitment to crypto has been evident through his actions and statements. He’s regularly hosted industry executives at his Mar-a-Lago resort and has shown enthusiasm for Bitcoin and other digital currencies.
His approach starkly contrasts with the current administration’s more stringent regulatory measures aimed at the crypto market. Trump’s policies are expected to foster a more favourable environment for cryptocurrencies, which can be expected to lead to increased investment and adoption.
The former president’s selection of Senator JD Vance on Monday as his running mate has further solidified his pro-crypto stance.
Vance is an outspoken supporter of Bitcoin and other digital currencies, making him a strategic choice in appealing to the growing number of crypto enthusiasts. This decision aligns the campaign with the interests of a significant voter base that values decentralized finance and tech innovation.
One of the critical factors contributing to Trump’s potential boost to Bitcoin prices is the appeal to younger voters.
Millennials and Gen Z are notably more involved in the cryptocurrency space, both as investors and advocates for the principles of decentralization and economic freedom. Trump’s pro-crypto position resonates with these demographics, who are often disillusioned with traditional financial systems and are looking for alternatives that offer more control and opportunity.
Financial backing
The influence of wealthy donors from the tech and crypto industries cannot be overstated. These individuals and organisations have the financial power to significantly impact election campaigns.
Trump’s campaign has already secured over $100 million in pledges from the crypto industry, providing the resources needed for aggressive advertising, grassroots mobilisation, and sophisticated digital outreach. This financial support is crucial in a competitive election and signals strong confidence from the crypto sector in Trump’s policies.
Contrast with the Biden administration
The current administration’s cautious stance on cryptocurrency has alienated a significant portion of the electorate, particularly those within the crypto community. President Biden’s implementation of stricter regulations is seen by many as stifling innovation and economic freedom.
This discontent creates a ripe opportunity for the Trump-Vance ticket to capitalise on, offering a more supportive approach to cryptocurrency and appealing to those disenchanted with the current regulatory environment.
The impact on Bitcoin prices
As the election approaches, the likelihood of Trump winning could continue to drive up Bitcoin prices.
Investors are betting on the potential for a more crypto-friendly administration that would encourage growth and adoption in the sector.
The recent surge following the assassination attempt highlights the market’s sensitivity to political developments and its preference for candidates perceived as supportive of digital currencies.
Nigel Green, deVere Group CEO and founder
