The Donald Trump Effect: Bitcoin Price EXPLODES While Global Stocks Dip

Former President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President once a vocal critic of cryptocurrency, has now become a surprising supporter. This change is happening as crypto gains importance in the 2024 presidential election, with significant donations being made to political action committees backing this shift.

Trump’s support has helped boost Bitcoin, which has risen about 11% over the past month. This is a sharp contrast to the less than 2% increase in global stock markets. Bitcoin’s rise coincides with Trump’s stronger political position, following a high-profile debate with President Joe Biden and his recovery from an assassination attempt.

Speculations Are At New Highs!

The excitement around Trump’s new stance grew after Dennis Porter suggested that Trump might declare Bitcoin a strategic reserve asset.

This has led to speculation that Trump and JD Vance could lead a presidency focused on cryptocurrency. The anticipation is further fueled by Trump’s upcoming speech at a Bitcoin conference on July 27, where he is expected to discuss his potential crypto policies.

Stocks Are Drowning

Global stocks are under pressure due to uncertainty about future company performance and a mixed start to the second-quarter earnings season. Investors are hoping for continued momentum from the earlier rally driven by AI and tech firms. Bitcoin’s correlation with stocks has become the most negative since 2023, showing a major shift in market trends.

It’s Been a Big Year for Bitcoin

Bitcoin has jumped about 51% in 2024, driven by demand for US exchange-traded funds and Trump’s crypto-friendly agenda. In comparison, MSCI’s global stock index has only gained about 12% this year. Trump has promised to end the “hostility” the crypto industry has faced from Biden’s regulators and Democratic lawmakers if he is elected.

He also suggested that Bitcoin could help the US become “energy dominant.”

Differing Views

Sean McNulty, Director of Trading at Arbelos Market, says, “Bitcoin is now a proxy for a Trump victory.” He notes that, unlike Bitcoin, stocks don’t have clear winners or losers linked to a Trump trade.

This indicates that Trump’s support for cryptocurrency has created a unique situation, tying Bitcoin’s future closely to the outcome of the upcoming election.

Also Check Out: Understanding Trump’s Changing Stance on Bitcoin: From Calling it ‘Scam’ to Attending Nashville Conference

Keep watching Coinpedia as this story develops.