Speculation that the failed assassination could increase Trump’s chances of a second term was a key driver of Bitcoin’s rebound, given that the Republican frontrunner has maintained a favorable stance on crypto in recent months.
Bitcoin rose 4.6% in the past 24 hours to $62,708.9 by 01:26 ET (05:26 GMT). The token had slid to over four-month lows last week, but was now trading nearly $10,000 above them.
Trump reportedly sustained minor injuries after a gunman opened fire at a rally in Pennsylvania. But the former President was seen urging his supporters to “fight!” in the immediate aftermath of the attack.
Initial reactions to the attack were that it stood to greatly boost Trump’s chances of a victory over Joe Biden.
Trump spoke in support of crypto during his recent campaigning efforts, stating that he would ensure the future of Bitcoin would be made in the U.S.
Trump also reportedly accepts campaign donation in crypto.
Expectations that his reelection would be positive for crypto drove up prices over the weekend, especially as Trump’s somewhat defiant stance in the face of the attack appeared likely to boost his popularity.
But just how much further Bitcoin could push remained in doubt, as distributions from defunct crypto exchange Mt Gox appeared set to continue.
Mt Gox began returning crypto lost during a 2014 hack back to clients earlier in July, and has given no signal that it plans to stop.
The sudden increase in token supply was a key driver of Bitcoin’s recent rout, as traders bet that receivers of the tokens would be likely to sell it.
While it was not immediately clear what the full extent of Mt Gox’s distribution will be, wallets associated with the exchange were seen moving about $9 billion worth of tokens earlier this year.
Broader crypto prices also rebounded, with world no.2 token Ether rising 4.3% to $3,338.85.
SOL, XRP and ADA rebounded between 1.5% and 5%, while among meme tokens, DOGE added 3.8%, while SHIB rose nearly 4%.
Sentiment towards crypto also improved amid growing expectations for an interest rate cut by the Federal Reserve in September.
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