Bitcoin (BTC) Rallies 9% Following Failed Assassination Attempt on Donald Trump During Campaign Rally

Analysts from H.C. Wainwright believe the market's positive reaction to crypto suggests increased confidence in Republican presidential candidate Donald Trump's election prospects.

Analysts believe that the market's positive reaction to crypto following an assassination attempt on Donald Trump during a campaign rally in Butler, Pennsylvania on Saturday, July 13, might be due to Trump's pro-crypto stance.

Bitcoin and BTC mining stocks surged following the failed assassination attempt on Donald Trump during a campaign rally in Butler, Pennsylvania on Saturday. This comes as no surprise, given Trump's well-known support for crypto.

After the incident, BTC rallied over 9% to reach a high of approximately $63,790 on Monday, while mining stocks gained around 10% in Monday’s session.

According to Mike Colonnese, CFA, many believe that the tragic event boosted Trump's odds of winning the election in November, and given that Trump is widely viewed as the pro-crypto candidate, who has come out and publicly supported Bitcoin mining in the U.S., the markets rallied following the failed attempt.

The selling pressure from the German government, which liquidated its remaining 50,000 BTC seized from the Movie2k case, has finally ended. This helped alleviate the overhang on BTC prices, and U.S. spot BTC ETFs saw over $1 billion in net inflows last week, acquiring over 18,000 BTC.

On the other hand, high on-chain selling pressure was partially due to the commencement of long-awaited Mt. Gox repayments. In 2010, Mt. Gox became the world’s largest Bitcoin exchange but faced a significant setback in 2014 when it halted trading, filed for bankruptcy, and disclosed 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, BTC 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 BTC 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.

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