Bitcoin’s recent spike on the spot markets, which culminated in the best single-day rally in nearly two months on Monday, appears to have found its peak.
The world’s largest cryptocurrency spiked more than 7% against the US dollar yesterday, following solid green candlesticks in the two days prior.
But today saw a rejection at $65,000, after which the BTC/USD pair fell back below $64,000.
Bitcoin recent bullishness was seen by some as a ‘Trump trade’ following the shocking attempt on former president Donald Trump’s life on Saturday.
Trump’s triumphant display after the assassination attempt ramped up the odds of him winning the high-stakes election in November.
As a subjectively pro-crypto candidate, traders took this at a bullish signal, no matter how macabre the underlying catalyst.
Despite bitcoin retreating since, Trump’s nomination of JD Vance as his running mate could have positive long-term consequences for bitcoin and the crypto markets as a whole.
Ohio native and senator Vance has a proven track record of voting in favour of pro-crypto policies.
In 2022, he stated that “crypto is taking off” because of perceived in equalities in the traditional banking sector.
This is why crypto is taking off. The regime will cut off your access to banking if you have the wrong politics. https://t.co/C88DCsehnN— J.D. Vance (@JDVance1) February 15, 2022
“Vance is a long-time advocate of cryptocurrency, and is even on public record as holding bitcoin,” Neil Roarty, analyst at investment platform Stocklytics, said of the nomination.
“With Vance next to Trump in the White House - an outcome that’s looking increasingly likely - there is a sense that pro-crypto policy could be on the agenda come 2025.”
For now, the BTC/USD pair is trading at $63,775, marking a 12% week on week increase.