The crypto market’s rebound picked momentum during the weekend, with its intraday gains drawing cues from the shocking assassination attempt on former president Donald Trump.
Trump’s growing reelection bid boosts crypto demand
The crypto market’s valuation jumped by 2.88% hours after gunfire erupted at Trump’s Pennsylvania rally, with the former president surviving the assassination attempt. Bitcoin (BTC) price also rose above $60,000 for the first time in 10 days.
Interestingly, MAGA (TRUMP), the largest Donald Trump memecoin, also surged by more than 30% after the assassination attempt.
TOTAL crypto market capitalization hourly performance chart. Source: TradingView
This upward movement indicates that many crypto traders anticipate a Trump victory in November’s upcoming US presidential election. Such an outcome could lead to more favorable crypto regulations than the current stringent policies under Joe Biden’s administration.
“Based on Bitcoin’s reaction so far, looks like markets are going to begin pricing in a full Trump victory,” noted Will Clemente, founder of crypto research firm Reflexivity Research.
Crypto derivatives market is bullish
The open interest (OI) of all top-ranking cryptocurrencies has risen in the past 24 hours, especially after the Trump news. Moreover, most of these assets show positive funding rates, suggesting long traders pay a fee to short trades to keep their bullish positions open.
Top 10 crypto assets and their derivatives data. Source: Coinglass
The rise in OI and positive funding rates suggest that most traders have a strong bullish sentiment. They are willing to pay a premium to maintain their long positions, reflecting their confidence in the market’s upward movement.
Related: What’s next for Bitcoin price now that German gov’t BTC balance hits zero?
Furthermore, the crypto market’s gains in the past 24 hours coincide with the relatively higher liquidation of short traders than the long ones. As of July 14, the market had witnessed $65.41 million worth of short liquidations compared to $22.93 million in long liquidations.
Crypto liquidation heatmap. Source: Coinglass
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