TOPLINE
U.S. markets remained steady on Monday morning despite the weekend’s shocking assassination attempt on former President Donald Trump. In contrast, Trump Media and various cryptocurrencies, including Bitcoin, saw significant price increases as investors speculate that the attack could boost Trump’s chances of reelection.
KEY FACTS
- U.S. Stock Futures: Following the attempt on Trump’s life, Dow futures rose 0.58%, S&P 500 futures climbed 0.43%, and Nasdaq futures increased 0.5% before markets opened on Monday.
- Global Market Reactions: European markets showed signs of uncertainty with the Stoxx 600 down 0.29%, Germany’s Dax index down 0.24%, France’s CAC 40 down 0.51%, and Britain’s FTSE 100 down 0.29%. In Asia, Japan’s markets were closed for a holiday, Hong Kong’s Hang Seng index dropped 1.52%, and the Shanghai Composite remained largely flat.
- Cryptocurrency Surge: Bitcoin’s price surged to over $63,000 on Monday, marking a nearly 5% increase from the previous day and a two-week high. Other popular cryptocurrencies such as Ether, Binance’s BNB, Solana’s SOL, and Dogecoin also saw gains between 4% and 6%.
WHY ARE CRYPTO MARKETS RESPONDING TO TRUMP?
The cryptocurrency market is known for its volatility, but some trends can be identified. Despite Trump’s historical skepticism towards cryptocurrencies—he once described them as “based on thin air”—he has recently positioned himself as a pro-crypto candidate. His efforts include supporting “made in the USA” Bitcoin, meeting with Bitcoin mining firms, and opposing the idea of a Federal Reserve-issued digital dollar, branding it a “dangerous threat to freedom.” Trump’s crypto-friendly stance seems to have influenced market reactions, especially as the failed assassination attempt appears to have increased his odds of winning the upcoming election. This mirrors a similar market response in June when President Joe Biden’s debate performance negatively impacted his campaign.
BIG NUMBER
$2.42 trillion: This is the total value of the cryptocurrency market, according to CoinGecko. Dominated by Bitcoin and Ether, the market has grown nearly 5% in the last day alone.
TANGENT
Other factors may also influence the crypto market this week. The anticipated launch of spot Ethereum exchange-traded funds (ETFs) could mirror the positive impact Bitcoin ETFs had on the market, potentially driving Ether prices higher and inspiring a broader market rally.
WHAT TO WATCH FOR
Trump Media & Technology Group shares surged over 50% in premarket trading on Monday. The company’s stock, influenced by developments surrounding Trump, including his legal issues, owns Truth Social, a social media platform promoted by Trump after his Twitter ban.
SURPRISING FACT
A Donald Trump-inspired crypto token, MAGA, experienced a 50% surge on Saturday following the assassination attempt. Although it has since retraced some gains, it remains up 40% from last week, with a current market capitalization of nearly $400 million.
