Trump Trade Sweeps Markets: Bitcoin Surges to $72,000, Trump Media Stock DoublesAs the US election approaches, financial markets are witnessing a surge in the "bet on Trump" trading strategy. Earlier on Wednesday, Bitcoin's price briefly broke through $73,000, just a step away from its all-time high
Trump Trade Sweeps Markets: Bitcoin Surges to $72,000, Trump Media Stock Doubles
As the US election approaches, financial markets are witnessing a surge in the "bet on Trump" trading strategy. Earlier on Wednesday, Bitcoin's price briefly broke through $73,000, just a step away from its all-time high. The cryptocurrency is currently trading above $72,000, with gains exceeding 13% for October, significantly outperforming the S&P 500. Besides Bitcoin, other smaller digital tokens also saw noticeable gains. Ethereum rose 4% to a 10-day high of $2,637; Binance Coin gained 2% to an 8-day high of $608; and Solana climbed 2% to a three-month high of $182.
Meanwhile, shares of Trump Media Corporation, closely associated with former President Donald Trump, continued their upward trajectory on Tuesday. The stock closed 8% higher on the day, more than doubling in value since the beginning of the month.
Multiple Factors Drive Bitcoin's Rise
Eric Beiley, managing director of Beiley Group, believes the price movements of Bitcoin and Trump Media this week indicate a market preference for a Trump victory in this year's election. This trend is also reflected in the betting market, with several prediction platforms showing a significant increase in Trump's chances of winning over Harris.
Beyond the positive factors associated with Trump, Bitcoin's rise also carries an anti-inflationary undercurrent. Billionaire investor Paul Tudor Jones has urged investors to use Bitcoin as a hedge against inflation, arguing that both a Trump or Harris presidency would exacerbate the US federal debt burden. While the Federal Reserve aggressively cut interest rates in September, some market players believe inflationary embers remain. This skepticism contributes to the rising price of Bitcoin, seen as a safe haven asset. Another safe haven asset, gold, has also reached record highs this month.
Recent market sentiment around a Trump victory has been building, not only in betting markets but also in financial markets' pursuit of a Trump trade. Bitcoin's strong performance and the surge in Trump Media's stock price indicate that investors are actively adjusting their investment strategies to navigate potential political risks and economic changes.
However, it's crucial to note that market sentiment isn't always stable, and the election outcome will have a profound impact on markets. Therefore, investors should carefully assess risks and monitor market dynamics closely when making investment decisions, and formulate well-informed investment strategies.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
