A failed plot to attack Donald Trump caused a big reaction in the crypto market. This pushed Bitcoin to a high of $60,300 in 10 days. The incident led to immediate changes across many digital currencies.
According to data from crypto analytics firm Santiment, tokens related to Trump saw big gains. TRUMP rose 63% when news of the came out. This shows how politics and cryptocurrency are becoming more connected as the U.S. presidential election gets closer.
The rally extended into the Asian trading hours. QCP Capital saw strong buying of Bitcoin on Coinbase from 5 AM to 1 PM Singapore time. This unusual trading pattern for a Sunday evening in the U.S. points to a bullish sentiment among investors.
Analysts attribute the positive market reaction to Trump’s recent pro-crypto stance and the historical precedent set by Ronald Reagan’s popularity surge following a similar incident in 1981. The Bitcoin community has generally shown bullish responses to pro-Trump news, viewing his survival as a potential boost to his chances in the upcoming election.
Role of German government’s Bitcoin supply
QCP Capital said the market was already primed for a rise. They noted factors like the German government’s low Bitcoin supply and large hedge funds buying call options last week. The attack acted as a trigger for a market eager to invest.
Some large players are now buying put options that expire soon. This shows caution among some investors. It’s unclear if this rally can continue. The rally could be a short squeeze, or it might fade when U.S. markets open.
Despite short-term ups and downs, QCP Capital believes crypto will do well in the medium term. Key reasons are increasing demand from Bitcoin spot ETF inflows and the expected launch of Ethereum spot ETFs. These factors support QCP Capital’s positive outlook on crypto’s future.
