- The failed assassination attempt on presidential candidate Donald Trump led to a strong weekend rally for crypto.
- Trump is seen as the stronger crypto candidate by the market, so increases in his odds of winning lead to increases in prices.
Trump Crypto Bump Leads to Blistering Weekend Rally
Crypto enjoyed a small bump on Saturday, alongside rising odds for Trump’s election after a failed assassination attempt.
This Trump bump turned into a blistering weekend rally across the board for crypto as the recent gloom receded from the market.
Trump is seen by the market as the better candidate for crypto after an explicit shift in tone over the last few months.
The failed assassination attempt gave Trump a significant boost in the prediction markets, which translated into a bump for crypto prices.
This initial Trump crypto bump on late Saturday was followed by steadily rising prices throughout the rest of the weekend.
Bitcoin (BTC) rose 7% to $62,500 since the attack with Trump’s odds of winning rising to 70% on Polymarket.
The broader crypto market has risen less than the flagship token, with the CoinDesk 20 Index (CD20) growing by 3.32% over the same period.
However, the weekend crypto rally was also likely influenced by the end of selling pressure from the German government and additional technical factors.
“The biggest fundamental news over the weekend was the Trump assassination attempt. Absolutely insane. This has improved the odds of a Trump presidency. Trump being the pro-crypto president should help galvanize the cryptocurrency bids.”
– Greg Magadini, director at Amberdata, stated.
Trump’s Crypto Crusade Continues with Bitcoin 2024 Conference
The argument that Trump will be the better crypto president is based on 2 separate lines of thinking.
The first reason for the Trump crypto bump is that he is seen as the stronger candidate for the markets overall.
Investors expect that a Trump presidency will mean more spending, lower taxes and less regulation.
All these factors broadly translate into higher crypto prices under Trump.
The other reason for the positive association between Trump and crypto is his recent efforts to court the industry and community.
Trump’s crypto courting began with a Truth Social post stating that crypto was a defense against a CBDC and that he wanted all the remaining bitcoins to be mined in the U.S.
Trump then attended a fundraiser in Silicon Valley for tech sector luminaries, where he made further positive remarks about crypto.
This event was quickly followed by a meeting with U.S. crypto mining industry leaders.
Rumors have also circulated that Trump discussed crypto policy with Elon Musk, who has come out in support of his candidacy.
Following the assassination attempt, Trump assured organizers that he would still be attending the Bitcoin 2024 conference in Nashville, Tennessee.
The crypto conference is set to run from July 25th to 27th, with Trump’s keynote speech on the 27th.
Crypto Investors Look Beyond Trump Bump at Germany and Technicals
While the initial crypto Trump bump from the failed assassination is undeniable, some investors are looking at additional factors to explain the continuing weekend rally.
Much of the weak sentiment from last week was attributed to the German government selling 50,000 bitcoins.
With that selling pressure now finished, investors are expecting a return of more bullish sentiment.
The crypto market as a whole has also been suffering from more general sentiment weakness from technical pressures.
However, with Bitcoin crossing above its 200-day simple moving average (SMA), investors are expecting a return of more positive sentiment from technical factors.
