According to analysts cited by the Financial Times on July 5, former President Donald Trump’s potential comeback is anticipated to increase Bitcoin’s value substantially.
As reported by the FT, the idea of a “Trump trade” is gaining popularity among cryptocurrency traders because of the former President’s favorable stance and policies towards cryptocurrencies.
The recent performance of the leading cryptocurrency has been impacted by sales from miners and regulatory actions taken by authorities in the United States and Germany. The expected payments resulting from the Mt. Gox bankruptcy situation have additionally contributed to market instability, leading to Bitcoin’s experiencing a drop below $54,000 for the first time in several months.
Nevertheless, analysts maintain a positive outlook on the possibility of a Trump triumph, foreseeing a substantial surge in Bitcoin’s value. This surge could potentially surpass previous records and even reach an unprecedented $100,000 by the time of the election.
According to CryptoSlate data, Bitcoin had experienced a modest recovery and was being traded slightly above $56,000 at the time of publication.
Trump: A Strong Supporter of Bitcoin
According to the report, industry experts are optimistic that the combination of a Trump administration and a strong Republican presence in Congress will create a regulatory environment more favorable to cryptocurrencies.
Top 5 Cryptocurrencies Today:
| Name | Price | 24H (%) |
|---|---|---|
Bitcoin
(BTC)
| $29,078.00
| -3.19% |
Ethereum
(ETH)
| $1,948.11
| -4.71% |
Tether
(USDT)
| $1.00
| -0.03% |
BNB
(BNB)
| $295.60
| -1.51% |
Cardano
(ADA)
| $0.51
| -10.30% |
>> Invest In Cryptocurrencies Now!
Donald Trump has recently become a prominent advocate for the cryptocurrency industry. Just recently, he welcomed top-level executives from the crypto mining industry to his luxurious Mar-a-Lago estate while also embracing campaign contributions in the form of digital assets. In the past few weeks, the ex-president has expressed his support for cryptocurrency, even hinting at the possibility of adopting Bitcoin as the nation’s reserve asset.
Market analysts predict that Trump’s favorable view on cryptocurrency could significantly boost Bitcoin’s attractiveness, potentially propelling its price to unprecedented heights. According to the report, some analysts speculate that if Trump wins the election, Bitcoin has the potential to reach $100,000 by Election Day.
Considering the possibility of a Trump presidency, the broader implications for the financial markets must be considered. The policies expected to be implemented under the Trump administration, such as more stringent immigration regulations, higher tariffs, and tax reductions, are predicted to contribute to the growth of the US deficit, leading to inflation and an increase in Treasury yields.
Geoff Kendrick, the head of digital assets research at Standard Chartered, pointed out that Trump’s policies could potentially result in a situation known as “fiscal dominance.” This refers to a scenario where substantial government deficits and debt weaken the Federal Reserve’s capacity to manage inflation effectively.
Kendrick believes that this particular situation could have a positive impact on the price of Bitcoin, considering its connection to essential indicators in the US Treasury. He mentioned that if the curve becomes steeper and the break-even rates exceed real yields, Bitcoin prices will likely rise. This would establish Bitcoin as a safeguard against diminishing trust in the US Treasury market.
Unpredictable Political Terrain
As per the FT report, if it becomes evident by late July that President Joe Biden intends to seek re-election, the chances of a Trump triumph will rise, which could propel Bitcoin to unprecedented levels.
Nevertheless, the report indicated that the success of the “Trump trade” hinges heavily on Biden emerging as Trump’s rival in the upcoming November election. Based on the RealClearPolitics Betting Average, Trump is currently favored with a 55% chance of winning, while Biden trails behind with a 16.5% probability of victory.
As long as Biden remains in the race, Bitcoin enthusiasts can expect to maintain a positive outlook. However, should Biden decide to step back and a fresh contender emerges with a perceived advantage over Trump, Bitcoin’s momentum could potentially waver.
Polymarket and other betting markets have witnessed significant bets on Biden dropping out of the race, with more than $11 million wagered on this possibility.
As of the latest update at 10:52 pm UTC on Jul. 5, 2024, Bitcoin holds the top spot in terms of market capitalization, while its price has experienced a decline of 2.85% in the last 24 hours. Bitcoin boasts an impressive market capitalization of $1.12 trillion, accompanied by a substantial 24-hour trading volume of $57.17 billion.
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