Bitcoin Soars to Six-Week High Following Trump’s Pro-Crypto Speech

Bitcoin surged to a record high of 2.6% since the middle of June after former president and Republican presidential candidate Donald Trump reiterated his pro-crypto stance during his speech at the Bitcoin conference in Nashville.

Bitcoin is currently trading at $68,846.08 according to CoinMarketCap data as of 10.48 a.m. EST. Other cryptocurrencies like Ether, Solana, and Dogecoin also traded at higher prices.

Daan Crypto Trades (@DaanCrypto), a full-time crypto trader and investor with a substantial following on X, noted that Bitcoin prices were mostly trading up last week while the stock market went downhill. Typically, this would mean a downsurge for Bitcoin but that was not the case this time. He revealed that he traded around 5-10% higher than expected due to this anomaly.

Explaining the Recent #Bitcoin Price Action 👇

The rumour that Trump would announce a strategic #Bitcoin reserve started last week.

During that time, $BTC mostly traded up, while stocks took a massive beating. Usually, BTC would have traded down considerably during such… pic.twitter.com/rbDJbNSPZv
— Daan Crypto Trades (@DaanCrypto) July 29, 2024

A top-ranking trader named DeFi^2 (@DefiSquared) shared insights on X into why Trump’s speech and Bitcoin’s price action are bullish. They noted that Trump’s speech mentioned a literal “strategic national Bitcoin stockpile,” which is reportedly a level of public acceptance quite unknown to the crypto world until now. They added that with so many U.S. citizens already holding crypto, Democrats will likely introduce crypto-friendly policies as well.

I thought it was obvious to people, but evidently not, so I'll give an extremely detailed breakdown of why both Trump's speech and its associated price action are ridiculously bullish:

Leading into the speech, there were billions of dollars of short term speculative bitcoin buys… https://t.co/WxRuVEdw1T pic.twitter.com/RoRG2dPt36
— DeFi^2 (@DefiSquared) July 28, 2024

The majority of Trump’s speech included positive statements and endorsed Bitcoin which might be another reason for its price hike. Talking to The Shib Daily via email, Ryan Lee, Chief Analyst at Bitget Research, revealed that Trump’s announcement to establish a national strategic Bitcoin reserve contributed to the surge.

He added that the U.S. government will not sell any Bitcoin it holds. Additionally, Senator Cynthia Lummis proposed that the Treasury might purchase 1 million BTC.

Lee noted that other probable reasons could be the U.S. Capital Market Linkage. This week, 5 out of 7 major U.S. tech giants (Apple, Microsoft, Alphabet, Amazon, and Meta) are releasing their financial reports. If their performance continues to be strong, Nasdaq might experience a weekly rebound, driving up risk assets. The Fed’s Federal Open Market Committee (FOMC) meeting is also scheduled for this week, with the market expecting dovish remarks from Federal Reserve Chair Jerome Powell.

Lastly, BTC contract data also remains optimistic, Lee opined. The open interest volume has been rising with the price, and the long-short ratio of contract accounts has remained below 1 for nearly 10 trading days, indicating a high level of bullish sentiment among major funds. This suggests the possibility of BTC breaking upwards in the near future.

Other analysts note that the surge in the price of Bitcoin highlights investors’ increasing confidence in this space and the broader crypto community.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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