Bitcoin Rebounds Despite Mt. Gox Concerns, Poised to Climb Back to $65,000

Bitcoin soared to a two-week high on Monday following an attempted assassination of U.S. presidential candidate Donald Trump, which increased the likelihood of the former president, known for his pro-cryptocurrency stance, winning the upcoming election. Trump reported being shot in the ear during a rally in Pennsylvania on Saturday, but his campaign confirmed he is recovering well. Some investors believe the attack has improved his chances of reclaiming the White House, leading to anticipated increases in trades betting on his victory this week.

Bitcoin surged 8.6% to $62,508, hitting a two-week high of $62,698 earlier in the session, bringing its year-to-date gains to 47%. Ether also saw an increase, rising 6.8% to $3,322. In the November U.S. election, Trump is running against Democratic President Joe Biden and has criticized Democrats' efforts to regulate the crypto sector. During a San Francisco fundraiser in June, Trump positioned himself as a supporter of cryptocurrency, though he has yet to detail his proposed crypto policies.

"Trump has certainly positioned himself as pro-crypto, and the weekend's shooting incident has bolstered his reelection odds, giving a significant boost to the crypto markets, with Bitcoin standing out prominently," said Tony Sycamore, a market analyst at IG. The organizers of the Bitcoin 2024 conference announced last week that Trump is scheduled to speak at the event in Nashville, Tennessee, on July 27.

Bitcoin had a strong start to the year following the launch of exchange-traded funds in the U.S., reaching a record high of $73,803.25 in mid-March. However, it has faced challenges since then, dropping to a four-month low in early July due to concerns over the potential sell-off of tokens from the defunct Japanese exchange Mt. Gox. "We've experienced four weeks of declines due to the Mt. Gox news, but the recent rebound suggests further upward momentum. I wouldn't be surprised to see it climb back up to around $65,000 by the end of this week," said Tony Sycamore, a market analyst at IG.

Final Thoughts: As the market continues to respond to these dynamics, investors remain watchful, anticipating further growth and stability in the weeks ahead. The upcoming Bitcoin 2024 conference, where Trump is scheduled to speak, adds another layer of interest and potential influence on the market's trajectory. Overall, Bitcoin's path in 2024 underscores the volatility and potential inherent in the cryptocurrency space.

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