Why Bitcoin and Other Cryptos Are Surging After the Trump Assassination Attempt

The crypto market has seen a significant surge following the assassination attempt on former US President Donald Trump at a campaign rally in Butler, Pennsylvania. The news has not only shaken the political landscape but also sent shockwaves through the cryptocurrency community, leading to substantial price increases across the board.

Market Reaction to Assassination Attempt

Bitcoin, the leading cryptocurrency, has experienced a notable rise, climbing more than 10% in a week and over 5% in a single day to reach approximately $63,000. This sharp increase comes on the heels of Bitcoin trading at around $55,000, a dip caused by the now-defunct Mt. Gox exchange repaying its creditors in Bitcoin, leading to significant sell-offs.

The attempt on Trump’s life is seen by many as potentially boosting his chances of securing the Republican nomination for the upcoming presidential election. Trump’s recent positive remarks about cryptocurrency have fueled optimism within the crypto community, who believe his election could be favourable for the industry.

Broader Crypto Market Impact

The bullish trend isn’t limited to Bitcoin. Ether, the second-largest cryptocurrency by market cap, has also surged, rising over 10% in the past week and more than 5% in a day to trade at $3,300. Other major cryptocurrencies, including Solana and Dogecoin, have seen respective daily increases of 5.4% and 4.8%.

Interestingly, niche cryptocurrencies associated with Trump or the Republican Party have also gained traction. TrumpCoin (DJT), despite not being officially linked to Donald Trump and facing controversy over false claims by “Pharma Bro” Martin Shkreli, has surged nearly 25% in the past week, currently trading at $0.008964.

Spot Bitcoin ETFs Experience Inflows

In addition to the political developments, the crypto market is buoyed by significant investments in spot Bitcoin ETFs. According to data from Farside, spot Bitcoin ETFs have seen consistent inflows since July 5, with a notable $310 million inflow on July 12 alone.

Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which saw $120 million in inflows, followed by Fidelity’s Bitcoin Fund (FBTC) with $115 million. Even Grayscale’s Bitcoin Trust (GBTC), known for its history of outflows, attracted $23 million in new investments.