Quick Hit:

Bitcoin’s value has surged following an assassination attempt on Donald Trump, with investors eyeing a Trump victory in the presidential election as a boost for crypto markets.

Key Details:

• Bitcoin’s value rose 5.2% to $63,061.55 following the assassination attempt on Trump.

• Investors anticipate a favorable regulatory climate for crypto under a Trump presidency.

• Trump is set to speak at a major bitcoin conference this month, reinforcing his crypto-friendly stance.

Diving Deeper:

Bitcoin hit a two-week high on Monday as betting markets suggested an increased chance of victory for crypto-friendly candidate Donald Trump in the upcoming U.S. presidential election. The value of bitcoin rose 5.2% to $63,061.55 at 4:43 p.m. London time (11:43 a.m. ET), according to CoinGecko, following a dramatic assassination attempt on the former president on Saturday.

Investors expect a Trump victory to boost various crypto stocks. Coinbase Global and miner Riot Platforms saw premarket trading increases of 4.5% and 5.25%, respectively. 

Trump is now seen as broadly supportive of the crypto sector. He is due to speak at a major bitcoin conference later this month and has started accepting donations from the crypto industry. His campaign has increasingly positioned him against Democrats favoring stricter regulations, like Sen. Elizabeth Warren.

Pandl added that potential macro policy changes under a second Trump presidency, such as ongoing deficit spending and a desire for currency weakness to reduce the trade deficit, could introduce downside risks for the U.S. Dollar, supporting Bitcoin’s price.

Last month, Standard Chartered analysts predicted the U.S. presidential election as a key catalyst for bitcoin's price, suggesting a Trump victory could push it as high as $150,000 by year-end. Bitcoin's recent rally reflects investor sentiment that a pro-crypto Trump administration could create a more favorable environment for digital assets, amidst broader market dynamics and political developments.