- Donald Trump’s stance on crypto has created a rift between BTC and global equities
- The divergence between the assets has attracted the attention of investors, traders, and market enthusiasts
- Crypto has risen to power, dominating the US politics
Donald Trump, the former President of the US and a strong critic of the cryptocurrency landscape, has now created a noticeable split between Bitcoin and global equities. Trump is contesting for the presidential elections in 2024. His stance on cryptocurrency has been very optimistic during this campaign.
Trump’s “pro-crypto” stance in 2024 caused a shockwave of reactions within the broader economic market. During the recent election campaigns, Trump has been quite vocal about his support for cryptocurrency, especially Bitcoin. He has also labeled himself America’s first “crypto President.”
In an election rally, he mentioned,
“I will see that the future of cryptocurrency and the future of Bitcoin is made in the USA, not driven overseas.”
While the crypto community has divided opinions on Trump’s recent crypto-mania, one thing is certain: The “Trump pump” has impacted the overall cryptocurrency market. BTC’s price action stands witness to this fact, as Bitcoin spiked to overcome the crucial resistance at $65,000, rapidly aiming to reclaim the all-time high (ATH).
However, the most significant development is the growing divergence between Bitcoin and global equities.
Recently, the 30-day correlation coefficient between Bitcoin and MSCI’s world share index dropped to -0.20. The negative figure clearly indicates a “divergence” between the two assets. A negative value is a pretty rare occurrence in the global economic scenario, as this value mostly remains positive.
Now, if we take a look at the recent BTC price action and gains, Bitcoin has been leading the way so far. BTC experienced an impressive 11% hike in price within the past month alone, whereas global equities managed to surge by only 2%, portraying Bitcoin’s firm hold over the global economy.
Trump’s unwavering support towards Bitcoin and his promise to alliviate the problems within the mining scenario in the US instills a sense of hope among investors and miners alike. Many industry leaders truly believe that Trump’s rise to power can be a bullish sign for the future of cryptocurrency, especially Bitcoin. However, the same cannot be expected for global equities, as several global economic uncertainties, including rising geopolitical tensions and the fear of an impending recession, have drastically impacted them.
Over the past few days, there have been several speculations about Trump making strategic announcements about the future of Bitcoin. He is also going to participate as a speaker at the global Bitcoin 2024 Conference in Nashville, along with prominent figures such as Michael Saylor, Robert F. Kennedy Jr., Cathie Wood, and more.
However, President Trump’s rival political parties have also agreed upon the growing significance of cryptocurrency. Democrat candidate and current President Joe Biden has also shown signs of acceptance towards cryptocurrency as well, with promises to work on changing its regulatory strategies and accepting cryptocurrency donations. Investors are now wondering if cryptocurrency will become a bipartisan policy, holding the central stage around which US politics revolves.
Trump’s shift in stance towards cryptocurrency is clear proof of the escalating power that the crypto market currently holds. Crypto has successfully managed to infiltrate broader macroeconomic factors and influence global politics. Many crypto enthusiasts believe that the upcoming election results will favor the candidate who embraces and upholds cryptocurrency with greater enthusiasm and vigor.
