Key Points
- Analysts suggest that a positive market response to crypto indicates increased confidence in Donald Trump’s election prospects due to his pro-crypto stance.
- The end of selling pressure from the German government and the commencement of Mt. Gox repayments have also influenced Bitcoin prices and market reactions.
Analysts from H.C. Wainwright have interpreted the positive market response to cryptocurrency as an indicator of heightened confidence in Donald Trump’s chances in the presidential election.
This confidence is attributed to Trump’s well-documented support for cryptocurrency, especially his endorsement of Bitcoin (BTC) mining in the United States.
Market Response to Failed Assassination Attempt
Following an unsuccessful assassination attempt on Trump during a campaign rally in Pennsylvania, Bitcoin and BTC mining stocks experienced a significant surge.
Bitcoin rallied over 9% since the incident, peaking at approximately $63,790, while mining stocks marked a roughly 10% gain.
Many believe this immediate market response boosted Trump’s chances in the upcoming election, given his pro-crypto stance and public support for Bitcoin mining in the U.S.
Selling Pressure and Market Influence
The price boost coincided with the cessation of selling pressure from the German government, which had liquidated its remaining 50,000 BTC seized from the Movie2k case.
The overhang on Bitcoin prices was alleviated, with U.S. spot Bitcoin ETFs witnessing over $1 billion in net inflows last week, acquiring over 18,000 BTC.
High on-chain selling pressure was partly due to the commencement of the long-awaited Mt. Gox repayments.
In 2010, Mt. Gox grew to be the world’s largest Bitcoin exchange but faced a major setback in 2014 when it halted trading, filed for bankruptcy, and announced the loss of approximately 850,000 BTC due to thefts.
Recently, the movement of 47,228 BTC from a Mt. Gox-associated cold wallet has triggered market reactions, while miners’ selling pressure continues to affect prices following a recent halving that reduced mining rewards by 50%.
In the week ending July 7, Bitcoin rallied 8.7% to $61,015, outperforming broader equity indices.
The network hash rate increased by 2.7% to 598 EH/s, while network difficulty remained at 79.5T following a 5% adjustment on July 4.
Higher Bitcoin prices compensated for lower transaction fees, raising hash prices by 5.2% to $0.049/TH/day, regaining the $0.05/TH/day mark for the first time in three weeks.
