Crypto Markets in Turmoil After Trump Assassination AttemptThe assassination attempt on former US President Donald Trump on Saturday sent shockwaves across the globe, triggering a wave of volatility in financial markets. The event saw a significant shift in the prices of assets tied to Trump's potential win in the 2024 election, with the cryptocurrency market serving as a "barometer" for this political event
Crypto Markets in Turmoil After Trump Assassination Attempt
The assassination attempt on former US President Donald Trump on Saturday sent shockwaves across the globe, triggering a wave of volatility in financial markets. The event saw a significant shift in the prices of assets tied to Trump's potential win in the 2024 election, with the cryptocurrency market serving as a "barometer" for this political event.
Bitcoin Surges Past $62,000 as Trump's Election Odds Soar
Since the assassination attempt, Bitcoin (BTC) has rallied by 7%, breaking through the $62,500 mark, hitting a recent high. This surge is mirrored in prediction markets, where Trump's odds of winning the election on the Polymarket platform have climbed to 70%.
Bitcoin's strong performance is inseparable from Trump's positive stance towards cryptocurrencies in recent years. He has openly expressed support for the industry and pledged to speak at the Bitcoin 2024 conference on July 27th. Politically, Trump leans towards a free-market economy with less regulation, which is undoubtedly good news for the crypto industry. As a result, Bitcoin, along with the broader crypto market, is seen as a "bet" on Trump's victory.
The Intersection of Politics and Finance: Trump-Themed Token "Polifi" Skyrockets
Beyond Bitcoin, a Trump-related token, "Polifi," has witnessed a remarkable surge. The emergence of this token tightly links political and financial markets, reflecting investors' focus and bets on Trump's political agenda.
Market Volatility Fueled by the "Trump Effect"
The market turbulence resulting from the Trump assassination attempt isn't limited to the crypto sphere. Other financial markets have also seen noticeable changes due to Trump's political stance:
- Yuan Weakens Against Dollar: Trump had threatened to revoke China's "most favoured nation" status in US trade and impose hefty tariffs on Chinese goods. If Trump is re-elected, these trade policies could resurface, leading to yuan depreciation.
- Mexican Peso Slides: Trump had a strained relationship with Latin American nations during his previous presidency. Consequently, his re-election could also cause the Mexican peso to depreciate.
- US Treasury Yields Rise: Trump's economic policies typically involve increased spending, tax cuts, and a widening budget deficit. These policies would contribute to rising US Treasury yields, potentially making the yield curve steeper.
Market Risks Associated with a Trump Victory
Historically, sharp steepening of the yield curve can trigger risk-off sentiment across financial markets. Trump's re-election might exacerbate this risk.
Market Outlook: Uncertainty Reigns
Despite the rise in S&P 500 futures, Asian markets have slumped due to weak Chinese economic growth data. The dollar index has climbed 0.10% to 104.19.
The market volatility stemming from the Trump assassination attempt will likely persist, with significant uncertainty surrounding future market direction. Investors need to closely monitor developments surrounding the event and remain vigilant about market risks.
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