Benchmark cryptocurrency bitcoin’s recent ‘Trump trade’ rally has cooled off as weekly trading enters the final stretch.
Bitcoin initially pumped following the shock attempt on presidential nominee Donald Trump’s life last Saturday, as traders weighed up the heightened prospect of a (comparatively) pro-crypto candidate taking office in November.
The BTC/USD pair saw one of the best daily sessions in weeks on Monday, but market bullishness has since fallen back, with losses posted across the previous two trading sessions.
Bitcoin has, however, added around 0.3% against the US dollar today, bringing the BTC/USD pair to $64,180 at the time of writing.
With president Joe Biden under intense pressure to step aside to give the Democrats some semblance of a chance of holding onto power, the question is: Does the so-call Trump trade have legs?
Perhaps, according to Swissquote Bank senior analyst Ipek Ozkardeskaya.
If Biden throws in the towel, “we could see the Trump trade gain further momentum”, said Ozkardeskaya.
“That would benefit to bitcoin, equities – especially the small and domestically focused ones – and cause a yield curve steepening with the long-end of the US treasuries feeling the heat of exploding debt.”
The Trump trade could last “a few weeks, maybe a few months”, Ozkardeskaya added.
Bitcoin’s month-on-month performance – Source: tradingview.com
For now, bitcoin is up 12% week on week but remains 1.5% down month on month.
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