"'Non-traditional safe assets' will attract attention"
Bitcoin surpasses $60,000 on the 14th
Donald Trump, the former U.S. president and Republican presidential candidate, was shot during a campaign event on the 13th (local time), leading to a surge in the price of Bitcoin, the leading cryptocurrency, which surpassed the $60,000 mark. Market experts also predicted that investors would initially prefer 'safe-haven assets,' including Bitcoin.
Kyle Rodda, senior financial market analyst at the online trading platform Capital.com, said on the 14th that clients were moving towards Bitcoin and gold following the shooting of Trump. He stated, "After this incident, the market will prefer trading safe-haven assets, but there will be a tilt towards non-traditional 'safe-haven assets'." Bitcoin had previously been identified as a 'safe-haven asset' and saw price increases during the outbreak of the Russia-Ukraine war.
In fact, on the 14th, the price of one Bitcoin surged more than 3% compared to 24 hours earlier, breaking through the $60,000 level. Bitcoin was trading in the $58,000 range that day but quickly surpassed the $60,000 mark after news of former President Trump spread. This was the first time Bitcoin had reached the $60,000 level in 11 days since the 3rd.
According to Bloomberg News, Nick Twidale, chief market analyst at ATFX Global Markets, also predicted, "There will undoubtedly be some capital movement into safe-haven assets during the Asian morning session." He anticipated, "Gold will attempt to reach an all-time high, there will be buying of the yen and the dollar, and funds will flow into U.S. Treasury bonds."
Bloomberg News reported that the shooting incident has increased the probability of Trump's victory, and as a result, financial markets expect attention to shift to stocks most affected by Trump's policies. Assets related to Trump's trade policies include the dollar, government bonds, private prison shares, credit card companies, and health insurance companies. Investors expect a favorable environment for the dollar's strength, rising government bond yields, and related stocks due to Trump's tariff, immigration, and fiscal deficit policies.
The reason for Bitcoin's rise is also interpreted as being due to former President Trump's historically favorable stance toward cryptocurrencies. Investors analyze that the shooting incident has increased the likelihood of Trump's victory in the upcoming U.S. presidential election. Last month, at a fundraising event in San Francisco, he referred to himself as the 'crypto president' and showed a positive attitude toward the cryptocurrency industry.
On the other hand, cryptocurrency investors evaluate that the Biden administration is imposing 'excessive regulations' on the industry. In December last year, the U.S. economic magazine Forbes reported that if former President Trump were to return to power, there is market expectation that the current administration's hostile cryptocurrency policies would be reversed.
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