The Donald Trump Effect: Bitcoin Price EXPLODES While Global Stocks Dip
Mustafa Mulla24 Jul 20243 min read
Former President once a vocal critic of cryptocurrency, has now become a surprising supporter. This change is happening as crypto gains importance in the 2024 presidential election, with significant donations being made to political action committees backing this shift. Trump’s support has helped boost Bitcoin, which has risen about 11% over the past month. This …
Former President Donald Trump Donald Trump Donald J. Trump is a US-based business tycoon, pro-crypto politician, and 47th (present) President of the United States. He comprehends the significance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto politician. Once doubtful about Bitcoin's dominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his pool. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency. Quick Facts Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Famous For Business, Politics Donald Trump - Career Highlights & Events 2016 – Elected as the 45th President of the United States from the Republican Party. 2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments 2019 – Slammed crypto king Bitcoin on X, calls it "not money". 2025 – A gala party was hosted by him for the top 220 Trump meme coin holders. President once a vocal critic of cryptocurrency, has now become a surprising supporter. This change is happening as crypto gains importance in the 2024 presidential election, with significant donations being made to political action committees backing this shift.
Trump’s support has helped boost Bitcoin, which has risen about 11% over the past month. This is a sharp contrast to the less than 2% increase in global stock markets. Bitcoin’s rise coincides with Trump’s stronger political position, following a high-profile debate with President Joe Biden and his recovery from an assassination attempt.
Speculations Are At New Highs!
The excitement around Trump’s new stance grew after Dennis Porter suggested that Trump might declare Bitcoin a strategic reserve asset.
This has led to speculation that Trump and JD Vance could lead a presidency focused on cryptocurrency. The anticipation is further fueled by Trump’s upcoming speech at a Bitcoin conference on July 27, where he is expected to discuss his potential crypto policies.
Stocks Are Drowning
Global stocks are under pressure due to uncertainty about future company performance and a mixed start to the second-quarter earnings season. Investors are hoping for continued momentum from the earlier rally driven by AI and tech firms. Bitcoin’s correlation with stocks has become the most negative since 2023, showing a major shift in market trends.
It’s Been a Big Year for Bitcoin
Bitcoin has jumped about 51% in 2024, driven by demand for US exchange-traded funds and Trump’s crypto-friendly agenda. In comparison, MSCI’s global stock index has only gained about 12% this year. Trump has promised to end the “hostility” the crypto industry has faced from Biden’s regulators and Democratic lawmakers if he is elected.
He also suggested that Bitcoin could help the US become “energy dominant.”
Differing Views
Sean McNulty, Director of Trading at Arbelos Market, says, “Bitcoin is now a proxy for a Trump victory.” He notes that, unlike Bitcoin, stocks don’t have clear winners or losers linked to a Trump trade.
This indicates that Trump’s support for cryptocurrency has created a unique situation, tying Bitcoin’s future closely to the outcome of the upcoming election.
Also Check Out: Understanding Trump’s Changing Stance on Bitcoin: From Calling it ‘Scam’ to Attending Nashville Conference
Keep watching Coinpedia as this story develops.
