Bitcoin Retakes 200-Day Average as ‘Trump Trades’ Back In Vogue After Weekend Attack

Bitcoin’s price has surged by 7%, reaching $62,500 following the recent weekend attack. This development significantly increases the likelihood of the pro-crypto candidate securing victory in the elections, now standing at approximately 70%, according to predictions on Polymarket.

The number one digital currency based on market worth has moved above its significant 200-day moving average (SMA), a commonly monitored indicator of long-term trends, according to CoinDesk’s data. This development, which depicts the downtrend initiated from the early June peaks, is considered a favorable indication for momentum investors. Additionally, tokens associated with Trump politics, referred to as Polifi, have experienced a noteworthy surge.

Over the past few months, Trump has changed his stance towards cryptocurrencies and has started supporting them to gain an edge over his opponent, Joe Biden, who is perceived as less crypto-friendly by the industry. Consequently, the value of bitcoin and other cryptocurrencies has become a proxy for betting on Trump’s success in the upcoming elections. The ex-president is scheduled to address the Bitcoin 2024 conference in Nashville, Tennessee, on July 27.

Over the weekend, the most significant development with far-reaching implications was the attempted assassination of Donald Trump. This turn of events is hard to believe. Despite the chaos, it appears that Trump’s presidency now has a stronger chance of occurring. Given Trump’s pro-crypto stance, this news could serve as a catalyst for increased investment in cryptocurrencies. – Greg Magadini, Amberdata’s derivatives director, expressed in an email.

In other parts of the market, the Chinese yuan (CNY) decreased in value against the U.S. dollar, as there were predictions of a Trump victory potentially leading to increased trade tariffs between the two countries. At the beginning of the year, Trump proposed withdrawing China’s “most favorable nation” trading status and imposing taxes exceeding 60% on Chinese imports. Similarly, the Mexican peso (MXN) weakened due to Trump’s past tense relations with Mexico during his tenure as President.

The cost of future contracts linked to the 10-year Treasury note decreased, implying an anticipated rise in yields. A Trump win in the election could lead to increased government spending, tax reductions, and larger budget deficits. Consequently, some financial institutions predict that the yield curve will become steeper in the upcoming months due to a potential Trump victory. Historically, significant steepening of the yield curve has resulted in heightened caution among investors in various financial markets.

As of now, contracts linked to the S&P 500 have risen by 0.18%, indicating a promising start for Monday’s trading session despite a dip in Asian stock markets due to underwhelming economic data from China. The dollar index, representing the US dollar’s value against six major currencies, has advanced by 0.10% to reach 104.19 based on TradingView data.