Former President Donald Trump
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.
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.
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.
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.
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