Bitcoin’s price has surged above $62,000 following an increase in Trump’s odds of winning the upcoming election after an assassination attempt on the former president. The cryptocurrency market has seen renewed volatility as assets linked to Trump’s victory have gained momentum. Bitcoin, in particular, has rallied 7% since the weekend attack, reaching $62,500 and surpassing the 200-day simple moving average.
The rise in Bitcoin’s price is a positive sign for momentum traders, indicating a potential uptrend in the market. Additionally, Trump-themed Polifi tokens have also surged in response to the increased probability of his victory in the elections. Trump’s shift towards embracing cryptocurrency has attracted support from the crypto community, who see him as a pro-crypto candidate.
In contrast, traditional assets like the Chinese yuan and Mexican peso have experienced weakness as a potential Trump victory could lead to higher trade tariffs and strained relations with certain countries. Futures tied to the 10-year Treasury note have fallen, suggesting higher yields if Trump returns to the White House due to increased spending and budget deficits.
Investment banks are anticipating a steepening of the yield curve in the coming months if Trump wins, which could trigger risk aversion in financial markets. Despite this, futures tied to the S&P 500 are trading higher, indicating a positive open on Monday. Asian stocks, however, have dipped following disappointing economic growth figures in China.
Overall, the recent surge in Bitcoin’s price and the volatility in traditional assets reflect the uncertainty surrounding the upcoming election and its potential impact on financial markets. Investors are closely monitoring developments in the political landscape as they navigate the evolving market conditions.