The positive effect of Trump news on Bitcoin price

Over the weekend, a seemingly negative piece of news about Donald Trump had a positive effect on the price of Bitcoin.

Looking at it more closely, however, the news doesn’t seem negative at all.

Donald Trump News and Its Impact on Bitcoin Price

The news is obviously the attempted assassination of Donald Trump.

On Saturday afternoon, in fact, Joe Biden’s opponent in the November presidential elections was the victim of an attack while holding a rally in Pennsylvania.

The assailant, one Thomas Matthew Crooks, shot him from about a hundred yards away, wounding him.

Trump was immediately protected by security personnel and ultimately suffered only minor superficial injuries to his face and ears.

Today he is expected in Milwaukee, Wisconsin, for another election rally.

While this may seem like negative news for Donald Trump, it actually had positive consequences for him as well, as he was not seriously injured.

Polls show that surviving the attack earned him even more support, so much so that he is now considered much more favored compared to Biden.

In fact, he was already ahead before the attack, especially after the televised debate between the two, in which Biden seemed apathetic and dazed, but since yesterday the difference seems to have increased, so much so that at this moment Trump is considered the big favorite.

The Bitcoin Price Consequences of Trump News

Before the attack, the Bitcoin price on Saturday it was around $58,000.

By the time the news began to circulate, it had fallen to $57,000, but with a far from decisive, albeit rapid, decline. In fact, it had simply returned to its Friday morning levels.

However, when news began circulating that Trump had only been grazed, the price of BTC returned to $58,000, erasing all losses.

At that moment, however, something happened.

Some photos of the attack began to circulate, especially on X, which attracted a lot of support for Donald Trump.

The most powerful of these was also shared by Elon Musk, who expressed full support for the Republican candidate.

In the world of finance, the terms “bull” and “bear” are commonly used to describe market trends. A “bull” market is characterized by an increase in stock prices, while a “bear” market is characterized by a decrease in stock prices.

This dynamic made financial markets believe that Trump’s chances of winning had become significant, and since Trump is a pro-crypto president, this had positive effects on cryptocurrency markets.

The Rise of Cryptocurrency Markets

At this point, the price of Bitcoin began to rise, first above $60,000 yesterday, and today also above $62,000.

These are values ​​that have not been seen since the first of July and are in line with those of mid-May and the end of February.

With yesterday’s and today’s high, it seems that the correction that began last Tuesday, which led the price of BTC to record new post-halving lows, has come to an end.

But it’s not just Bitcoin to rise again.

For example, Ethereum, for which the launch of new ETH spot ETFs on US stock exchanges is expected soon, has returned above $3,300 after falling below $2,900 last week.

Taking prices from seven days ago as a reference, Bitcoin is at +12%, Ethereum at +14%, BNB at +10% and Solana at +15%. XRP is at +25%, but overall, Ripple’s cryptocurrency is following a slightly different trend than the others.

Cardano is also up +20%, while TON is an exception, stopping at +4%.

It is worth noting, however, that in the medium term, and especially since the beginning of the year, BTC and ETH are respectively at +49% and +47%, while XRP is at -13% and ADA at -26%.

So, the increase was felt by a little bit by everyone, in the short term, while in the medium term there are still significant differences.

Trump and cryptocurrencies

In the 4 years of Joe Biden’s democratic administration, US government officials have frequently attacked the cryptocurrency sector, most notably the SEC.

Furthermore, the processing of the bill drafted by Congress to regulate the sector was interrupted.

Republican Donald Trump, on the other hand, is much more supportive of cryptocurrencies, both because he owns a large amount of them himself and because he has publicly expressed his support for the sector.

In fact, precisely for this reason, he received several certificates of support and backing from the world of cryptocurrencies, including from the founder of Tron, Justin Sun.

Given this, it is easy to understand why the widening gap in the polls between challenger Trump and President Biden has had a positive impact on cryptocurrency prices.

Furthermore, after a tough week – the last one – it was already clear by Friday that the ongoing correction was over. At that point, it was absolutely reasonable to expect a recovery, and the aforementioned news did nothing but trigger a recovery that was probably already ready to happen.

Waiting for autumn

However, one should not celebrate victory too soon.

First, it is not certain that the medium/long-term trend has reversed.

In fact, the lateralization of Bitcoin’s price that began at the end of February is still alive, causing it to always fluctuate within a range between US$57,000 and US$72,000, with rare exceptions above and below.

In March, it remained above $72,000 for about three days, while about ten days ago it fell below $57,000 for two days, returning to that level again on July 8.

These small and brief excursions above and below the price range that have been maintained since the end of February actually have very little importance in the medium/long term, unless they occur frequently and, above all, last longer.

Therefore, on the one hand, the sideways period persists despite the brief dip below $57,000 last week, while on the other hand, there are no clear signs of a possible breakout above the $72,000 wall in the near term.

It could all be delayed until the fall, given that November could be a particularly hot month for Bitcoin, even though markets often try to anticipate events. In this case, if the bullish breakout is expected in the fall, it is possible that markets could start pricing it in as early as late August.

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