According to the statement made by cryptocurrency analysis company QCP Capital, the cryptocurrency market experienced a significant rally after the assassination attempt against former President Donald Trump.
The event, which occurred at the beginning of the weekend, created a strong upward momentum that extended into Monday's Asian session. This increase was largely driven by aggressive programmatic buying of Bitcoin on Coinbase from 5 a.m. to 1 p.m., a highly unusual pattern for a Sunday evening in the United States.
QCP Capital suggested that the market's reaction could be attributed to the belief that Trump would triumph in the upcoming election, in line with the market's reaction to Ronald Reagan's failed assassination attempt in 1981. Trump's pro-crypto stance is seen as a positive factor for cryptocurrency prices.
“The market was already primed for a rally,” QCP Capital said, citing the German government’s depletion of BTC holdings and the significant call options made by major hedge funds the previous week. “Trump was the perfect trigger for a market eager to go long.” .”
However, the future of this upward trend remains uncertain. QCP Capital raised the question of whether the positive momentum will continue when US markets open, possibly resulting in a significant short squeeze. They observed that some institutional players have hedged against potential downside risks by purchasing recent bonds, indicating the possibility of the US easing the current rally.
Despite these short-term uncertainties, QCP Capital remains optimistic about the medium-term outlook for cryptocurrencies. They cite continued massive demand with Bitcoin spot ETF inflows and the anticipated launch of the Ethereum spot ETF as key catalysts for sustainable growth in the market.
*This is not investment advice.
