Wed, February 19, 2025

Bitcoin Up 9% Amid Trump’s Crypto Support

Биткоин вырос на 9% на фоне поддержки криптовалют со стороны Трампа

Quick Look:

  • Market Confidence: Analysts note increased market confidence in Trump’s support for cryptocurrency, particularly Bitcoin mining in the U.S.
  • Bitcoin Surge: Bitcoin rose 9% to $63,790, and mining stocks gained about 10% after a failed assassination attempt on Trump.
  • Alleviated Selling Pressure: Bitcoin prices benefited from reduced selling pressure as the German government liquidated 50,000 BTC.

Analysts from HCW have highlighted the market’s positive reaction to the cryptocurrency sector, indicating increased confidence in Republican presidential candidate Donald Trump’s election prospects. This confidence stems from Trump’s well-documented support for cryptocurrency, particularly Bitcoin (BTC) mining in the United States.

Surge in Bitcoin and Mining Stocks

Following a failed assassination attempt on Trump during a campaign rally in Butler, Pennsylvania, on Saturday, July 13, Bitcoin and BTC mining stocks experienced a significant surge. Since the incident, Bitcoin rallied over 9%, reaching a peak of approximately $63,790 by Monday, while mining stocks saw gains of around 10% in Monday’s trading session. This notable rise reflects market sentiments aligning Trump’s potential presidency with a more favourable environment for cryptocurrency.

The Impact of Selling Pressure Alleviation

This boost in Bitcoin prices coincides with the easing of selling pressure from the German government, which liquidated its remaining 50,000 BTC seized from the Movie2k case. The liquidation overhang on BTC prices diminished, facilitating U.S. spot BTC ETFs to see over $1 billion in net inflows last week, acquiring over 18,000 BTC. The alleviation of this selling pressure has positively impacted Bitcoin’s market performance.

The Mt. Gox Factor

Adding to the market dynamics, the long-awaited Mt. Gox repayments have also influenced Bitcoin prices. Mt. Gox, once the world’s largest Bitcoin exchange, faced a significant setback in 2014 when it halted trading, filed for bankruptcy, and reported a loss of approximately 850,000 BTC due to thefts. The movement of 47,228 BTC from a Mt. Gox-associated cold wallet triggered market reactions recently. The selling pressure from miners continues to influence prices, particularly following a recent halving that reduced mining rewards by 50%.

Increased Network Hash Rate

The week ending July 7 saw Bitcoin rally 8.7% to $61,015, outperforming broader equity indices. During this period, the network hash rate increased by 2.7% to 598 EH/s, with network difficulty remaining stable at 79.5T following a 5% adjustment on July 4. This increase in hash rate indicates growing confidence and investment in the Bitcoin network, suggesting a bullish outlook among miners and investors alike.

Bitcoin Hash Rate Up 2.7%, Network Difficulty Stable

The recent market movements in Bitcoin and BTC mining stocks underscore the significant impact of political developments and external factors on the cryptocurrency market. Positive sentiment towards Trump’s pro-crypto stance has contributed to a notable surge in Bitcoin prices.

The easing of selling pressures and the dynamics surrounding Mt. Gox repayments have also boosted Bitcoin and mining stocks. The interplay between political developments and cryptocurrency performance remains crucial as the market responds to these factors.

Investors and analysts closely observe these interactions to understand the market’s direction and potential opportunities. The ongoing influence of political and external factors will continue to shape cryptocurrency market dynamics.

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