Bitcoin soars, what’s next for crypto?

What unexpected developments are taking place in the cryptocurrency market after Trump’s shooting and how could this event change the course of events?

On a sunny Saturday in Pennsylvania, an unexpected event took place: Donald Trump, former US president and a prominent supporter of cryptocurrencies, was shot in the right ear during one of his political rallies.

Immediately after the attack, Trump’s campaign team reassured the public that he was doing well, “fine” and looking to attend the Republican National Convention in Milwaukee.

This heightened attention and the dramatic nature of the event has led to a significant shift in market sentiment, with Trump, known for his pro-crypto stance, now seeing the possibility of a political comeback greatly increased.

As a result, the crypto market has been bullish on optimism. Bitcoin (BTC), which was trading at around $58,000 before the incident, rose to $63,218 shortly after the news broke. As of July 15, BTC is holding strong at $63,154, up 5% in the past 24 hours.

BTC price chart

Bitcoin’s price recovery is particularly significant as it has broken above the critical 200-day simple moving average (SMA), a key indicator for long-term trends, suggesting positive momentum for investors.

This bullish sentiment is not limited to Bitcoin; the entire cryptocurrency market has revived, with total market value increasing by approximately 5% to $2.29 trillion.

Ethereum (ETH) was also up around 5.5% to trade around $3,350, with many altcoins including Mogcoin (MOG), Pendle (PENDLE), and Stacks (STX) posting double-digit gains.

Let’s delve deeper into the current sentiment around this event, explore upcoming trends, and examine the reactions of analysts and market participants.

Trump’s Resurgence and the Fate of Crypto

Trump has shifted his stance on crypto in recent months, positioning himself as a pro-crypto candidate to take on rival Joe Biden and to appeal to the crypto community seeking a more favorable regulatory environment.

Trump has not only expressed support for the local blockchain and crypto industry, but has also integrated crypto into his campaign. His campaign is accepting crypto donations and has pledged to support Bitcoin mining if he returns to the White House.

Even after the assassination attempt, Trump has not given up on his efforts to engage with the crypto community. He is scheduled to speak at the Bitcoin 2024 conference in Nashville later this month, organizers confirmed.

We are delighted to announce that Donald Trump has committed to delivering his speech in person at Bitcoin 2024. We are proud to welcome him and share the solidarity of the global Bitcoin community and our universal commitment to freedom of expression and peaceful democracy.

— Bitcoin Conference (@TheBitcoinConf) July 14, 2024

Trump’s attendance at the conference is expected to help him raise $15 million from donors. Bitcoin Magazine CEO David Bailey has lobbied Trump and his team for the event on multiple occasions.

Meanwhile, sentiment around Trump’s resurgence is also evident on decentralized prediction market platform Polymarket, where 71% of users are now betting on Trump’s victory in the upcoming presidential election, a big increase from 60% at the time of the attack.

On the other hand, President Joe Biden’s chances of winning on the same platform are 18 percent, or 4 times less.

Amid these developments, Bitcoin ETFs saw $1.4 billion in inflows last week, the fifth-largest weekly inflow since their inception in January 2024. This closely aligns with the possibility of Trump returning to power.

Speculations and support on social media networks

Following the assassination attempt against Donald Trump, the cryptocurrency market is awash with new developments, especially on the Solana (SOL) blockchain.

Solana has recently become a breeding ground for meme coins, with platforms like Pump.fun making it easy for users to launch their own tokens.

Following the incident, a wave of new meme coins inspired by the incident emerged. Coins like “The Ear Stays On,” “Trump Fights Gun,” and others caught the market’s attention and reached a market value of millions within hours of the attack.

Prominent crypto analyst Michaël van de Poppe highlighted that Germany has completed selling its Bitcoin holdings, which could ease some of the downward pressure on the market.

Germany completed its sales #Bitcoin.

Global uncertainty is rising following the assassination attempt on Trump.

An ideal climate for Bitcoin to continue its steady rise.

Ethereum ETF coming this week.

It just starts over again. picture.twitter.com/pEOsGykYpv

— Michael van de Poppe (@CryptoMichNL) July 15, 2024

He also stated that the global uncertainty that increased with the assassination attempt created a suitable environment for the rise of Bitcoin and that the upcoming Ethereum ETF launch could further stimulate the cryptocurrency market.

Stockmoney Lizards called the Trump assassination attempt a “black swan event,” an unlikely event that usually leads to serious consequences. However, they noted that this event is unique in potentially driving gains in the crypto market.

#Bitcoin
We have indeed witnessed a true black swan event. #Embers assassination attempt. This will be the first black swan that will lead to gains in the crypto market.

Trump’s presidency hasn’t been priced in yet. pic.twitter.com/gAOCs0WQbt

— Stockmoney Lizards (@StockmoneyL) July 14, 2024

According to their analysis, the possibility of Trump returning to the presidency has not yet been fully reflected in Bitcoin’s price, meaning there is room for further growth as the political situation develops.

Bitcoin Magazine has shared another shift in perspective from BlackRock CEO Larry Fink. Once a critic of Bitcoin, Fink has become a big believer after taking a closer look at Bitcoin, especially since BlackRock launched its own spot Bitcoin ETF in January.

Given BlackRock’s influence and Bitcoin’s growing acceptance among institutional investors, its support could be seen as a bullish signal.

When the market is experiencing a bullish wave, it is important to proceed with caution. The influx of meme coins can create bubbles that are prone to bursting and lead to sudden and exponential losses.

As always, it is important to do thorough research and not rely solely on market sentiment based on current events.