Trump Media Soars, Bitcoin Hits $63K After Attack

U.S. markets remained steady on Monday morning following an attempted assassination of former President Donald Trump over the weekend. In stark contrast, shares of Trump Media and cryptocurrency prices, particularly Bitcoin, saw significant surges as investors speculated that the incident might improve Trump’s chances of winning reelection. This speculation appears to be driving market activity, with Trump Media shares and various cryptocurrencies benefiting from the uncertainty and potential political ramifications of the attack.

U.S. stock futures showed minimal movement in the aftermath of the incident, where Trump was shot in the ear during a campaign rally in Pennsylvania on Saturday. Specifically, Dow futures rose by 0.58%, S&P 500 futures by 0.43%, and Nasdaq futures by 0.5% before markets opened on Monday morning. This indicates a measured response from traditional stock markets, which remained largely unaffected by the news in terms of volatility, suggesting that investors are still assessing the long-term implications of the event.

The assassination attempt created a wave of uncertainty in global markets, leading to varied responses across different regions. In Europe, the Stoxx 600 index fell by 0.29%, Germany’s Dax index decreased by 0.24%, France’s CAC 40 dropped by 0.51%, and Britain’s FTSE 100 declined by 0.29%. These figures reflect a cautious approach by European investors, who are likely concerned about the potential instability and geopolitical ramifications. Meanwhile, in the Asia Pacific region, market reactions were mixed. The Chinese GDP data released concurrently was lackluster, adding to the region’s economic concerns. Japanese markets were closed for a public holiday, which limited trading activity, while Hong Kong’s Hang Seng index fell by 1.52%, and the Shanghai Composite remained largely flat, underscoring the regional uncertainty.

Bitcoin’s price surged to over $63,000 on Monday, marking a nearly 5% increase from the previous day and reaching a two-week high. This rise is particularly notable as it contrasts with a general downward trend for the digital asset, which had hit a four-month low in early July. This previous slump was attributed to concerns over potential selloffs from the German government and creditors of the bankrupt crypto exchange Mt. Gox, which began repaying around $9 billion worth of recovered tokens stolen before declaring bankruptcy in 2014. The sharp increase in Bitcoin’s price following the assassination attempt suggests that investors view Trump’s potential political resurgence as a positive development for the cryptocurrency market.

Other digital assets also experienced significant gains in the wake of the attack on Trump. Ether, Binance’s BNB, Solana’s Sol, and Dogecoin all saw increases between 4% and 6% from the previous day, with weekly climbs ranging from 11% to 17%. This widespread rally in the cryptocurrency market indicates a broader investor sentiment that associates Trump’s political fortunes with a favorable environment for digital assets.

Shares of Trump Media & Technology Group surged over 50% in premarket trading on Monday. The company, primarily owned by Trump, has seen volatile share prices since its stock market debut earlier this year. The shares have often reacted to developments involving Trump, including his criminal convictions and ongoing trials. Trump Media owns Truth Social, an alternative social media platform that Trump heavily promotes following his ban from Twitter, now rebranded as X. This significant increase in share price highlights the speculative nature of the market and the influence of Trump’s personal and political developments on his associated business ventures.

Crypto markets, known for their inherent volatility, often defy rational explanation. Despite Trump’s historical skepticism toward the crypto industry—labeling assets like Bitcoin as highly volatile and criticizing their potential for unlawful activities—he has increasingly presented himself as a crypto-friendly candidate. This shift includes advocating for “made in the USA” Bitcoin, meeting with Bitcoin mining firms, and opposing the concept of a Federal Reserve-issued “digital dollar,” which he has branded a “dangerous threat to freedom.” Trump has vowed to block the creation of such a digital dollar if re-elected and is also scheduled to speak at a Bitcoin conference later this month. These actions suggest that Trump is positioning himself as a supporter of the crypto sector, potentially to differentiate himself from his political opponents and appeal to undecided voters.

The failed assassination attempt appears to have altered one of the few predictable factors in crypto markets: Trump’s election odds. Pollsters, betting markets, and various Republican politicians suggest the incident has improved Trump’s chances of reelection. This marks the second significant crypto market reaction to a major election development this year. The first occurred in late June after President Joe Biden’s poor debate performance, which caused turmoil within the Democratic camp and raised doubts about his capacity to run for another term.

The total cryptocurrency market value stands at $2.42 trillion, according to data from CoinGecko. Dominated by Bitcoin, which accounts for more than half of the total value, and Ether, which holds around 17%, the market has grown nearly 5% in the past day. This growth reflects the overall positive sentiment in the crypto market following the news of the assassination attempt.

Trump’s reelection prospects are not the only factors influencing the crypto market this week. Spot Ethereum exchange-traded funds (ETFs) are anticipated to launch soon, possibly this week. The introduction of Bitcoin ETFs previously sparked market optimism, driving Bitcoin to an all-time high after a prolonged slump. Similarly, the launch of Ether ETFs could inspire a broader market rally and boost the token’s prices.

A Donald Trump-inspired cryptocurrency token, MAGA, saw its market capitalization reach nearly $400 million on Monday. The meme altcoin experienced a sharp 50% increase on Saturday following the assassination attempt. Despite losing around 16% in the past 24 hours, it remains up 40% compared to the previous week. This significant movement underscores the speculative and often unpredictable nature of the cryptocurrency market, particularly in response to major political events.