Trump Media Shares Soar, Bitcoin Surges Above $63,000 After Assassination Attempt

Top line

US markets were flat on Monday morning following the attempted murder by former President Donald Trump over the weekend, contrasted with the soaring prices of Trump Media and cryptocurrency tokens like Bitcoin, as investors speculate the attack could boost Trump’s chances of winning re-election.

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

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Key facts

U.S. stock futures were largely unchanged after Trump was shot in the ear during a campaign rally in Pennsylvania on Saturday, with Dow futures up 0.58%, S&P 500 futures 0.43% and Nasdaq futures 0.5% ahead of markets opening Monday morning.

However, the attempt on Trump’s life generated uncertainty in global markets, with the European Stoxx 600 index falling 0.29%, the German Dax index falling 0.24%, the French CAC 40 falling 0.51% and the main British index FTSE 100 falling 0.29%.

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

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

The bulk of Bitcoin’s nearly 14% gain this week came after the Trump assassination attempt, and the token’s rally bucks a broader downward trend for the digital asset, which fell to a four-month low in early July. amidst uncertainty about potential sales by the German government and creditors of failed cryptocurrency exchange Mt. Gox, which in July began paying back about $9 billion in recovered tokens stolen before it filed for bankruptcy in 2014.

Prices of other popular digital assets also surged 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 as of 4:30 a.m. EST on Monday, and weekly highs between 11% and 17%.

What to watch out for

Shares of Trump Media & Technology Group surged more than 50% during premarket trading on Monday. Shares of the company, most of which are owned by Trump, have been volatile since its stock market debut earlier this year and have 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 crypto 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, he he said he was “not a fan” of cryptocurrencies in 2019, fired Assets like bitcoin are highly volatile and “based on nothing” and have repeatedly criticized their potential to facilitate “illegal behavior” like drug trafficking — he has increasingly sought to brand himself as a crypto-friendly candidate and is using it as a dividing line with Democrats to reach swing voters. Trump’s recent efforts to court the digital sector include embracing “Made in USA” Bitcoin, meeting with Bitcoin mining companies and protesting against the notion of a so-called “digital dollar” issued by the Federal Reserve, something the central bank has explored but has not indicated a position on either side, labeling it a “dangerous threat to freedom” and vowing to block its creation if reelected. He is also expected to speak at a Bitcoin conference later this month. Saturday’s attack managed to alter one of the few parameters that could predictably move cryptocurrency markets: the odds of Trump 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. It’s the second time cryptocurrency markets have jumped in this fashion on a major election development. The first was in late June, after President Joe Biden’s dismal debate performance ignited chaos in the Democratic field and heightened questions about his ability to run for or serve another term.

Big number

$2.42 trillion. That’s how much the entire cryptocurrency market is worth, according to data from CoinGecko. The market, which is dominated by Bitcoin with more than half of its total value and Ether, a distant second with about 17%, grew almost 5% in the last day.

Tangent

The likelihood of Trump securing the presidency is not the only factor likely to affect the cryptocurrency market this week. Spot Ethereum exchange-traded funds, ETFs, are also expected to launch in the near future, possibly this week. The introduction of Bitcoin ETFs has sparked similar optimism across the market — Bitcoin Reached an all-time high after a years-long slump following a “crypto winter” and a series of scandals following its introduction — and Ether ETFs could help inspire a more general rally as well as drive 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 surged nearly 50% on Saturday following the assassination attempt. While it has pared gains with losses of about 16% in the past 24 hours, it is still up 40% from the same period last week.

Further Reading

ForbesTrump Says ‘All’ Bitcoin Mining Should Be in the US in His Latest Cryptocurrency Embrace ForbesBitcoin’s recovery stalls as Mt. Gox fears rock crypto marketBy

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