Why are Bitcoin investors obsessed with the ‘Trump-trade’?

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Last Updated on 7 July 2024 by CryptoTips.eu

The last few weeks have not exactly been rosy for Bitcoin and many investors are becoming increasingly nervous.

The expected bull run that normally takes place after every halving hasn’t happened yet and major Hodlers such as Mt Gox as well as the American and German governments are selling their Bitcoins increasingly fast (probably because they fear that the price will fall further).

Various analysts and media are therefore hoping for the ‘Trump trade’ to happen later this year in order to finally reach the price of $100,000 for one Bitcoin.

But what is it exactly?

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Now that the crypto market is clearly looking for a new catalyst which can push up the price of Bitcoin, just like the ETFs did at the beginning of the year, there is increased talk on internet forums about the ‘Trump trade’.

This refers to a Bitcoin rally in the second half of the year on the prospect of a victory for the former president in November. That belief has only grown since last week’s presidential debate between Donald Trump and Joe Biden.

The “Trump trade” depends on two key pieces of information: Trump is the more pro-crypto candidate of the two and his policies will make assets like Bitcoin more attractive to the rest of the world.

Nervousness

In addition, US President Joe Biden’s team, like German Chancellor Olav Schultz’s team, has lost a lot of credit among the crypto community lately.

This is because, ever since Bitcoin’s peak in March of this year (when it reached a record price of $74,000), those two governments have increasingly sold their seized Bitcoins, putting pressure on the price.

As the analysts of Ryze Labs noted in the Financial Times on Friday: “Both authorities hold more than $15bn worth of bitcoin, which is enough potential selling pressure to make short-term bitcoin holders nervous.”

Even Bloomberg admitted to the existence of the ‘Trump trade’, which is now the preferred belief of many crypto investors.

At the time of writing, Bitcoin is trading for $57,700.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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