An attempted assassination on former U.S. President Donald Trump at a campaign rally in Butler, Pa., Saturday has left the market on edge as the week begins.
The incident has led traders to consider more stable investments amidst the uncertainty. While some are turning to traditional safe-haven assets like gold, others are gravitating towards Bitcoin.
Bitcoin’s Response
Bitcoin saw a surge to over $60,000 following the attack. Despite one spectator losing their life and two others sustaining critical injuries, Trump emerged unharmed. The alleged shooter, identified as 20-year-old Thomas Matthew Crooks, was confirmed deceased by the U.S. Secret Service. Trump remains scheduled to speak at the Republican National Convention in Milwaukee this week.
Bitcoin as a Safe-Haven Asset
Traders are showing interest in Bitcoin as it hovers just below $60,000 at the time of publication. Some see the assassination attempt as potentially boosting Trump’s election chances in November, prompting them to turn to Bitcoin. Others are reacting impulsively to the political turmoil by seeking refuge in the cryptocurrency market.
Trump’s Stance on Cryptocurrency
Trump’s recent declaration as a “crypto candidate,” coupled with his willingness to accept donations in various cryptocurrencies, marks a significant shift from his previous stance against Bitcoin. Despite this turnaround, he has garnered support from cryptocurrency leaders and the community leading up to the upcoming election.
Market Reactions
Apart from Bitcoin, traders are expected to turn to traditional safe-haven assets like gold and the Swiss franc in response to the political and economic uncertainty sparked by the assassination attempt.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted that the events over the weekend are likely to bring increased volatility to the stock and bond markets on Monday. The flight to safe havens such as the Swiss franc and gold is anticipated, with Bitcoin also seeing a positive reaction owing to kneejerk safety-driven trading.
Other Assets of Interest
In addition to the cryptocurrency market, traders may also keep an eye on Trump Media stock, which has displayed significant volatility since its inception in late March and was up slightly in after-hours trading following the incident.
Vinamrata Chaturvedi contributed to this article.
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