United States presidential candidate Donald Trump, who has shown great support for Bitcoin, has led to a growing divergence from global entities.
Donald Trump’s electoral campaign and his increasing support for Bitcoin and the broader crypto market are demonstrating a growing divergence from global equities.
The Bloomberg report indicates that the 30-day correlation between the MSCI index for global equities and Bitcoin is decreasing, with a projected value of minus 0.20. This is an uncommon occurrence, as the measure has maintained a positive trend since 2020. A reading of 1 indicates that Bitcoin and global equities are moving in unison, while a reading of -1 implies that they are moving in the opposite direction.
A mixed start to the second-quarter earnings season has resulted in some pressure on global equities. Investors are in search of evidence that the current rally, which technology companies and artificial intelligence have driven, has the potential to persist.
Donald Trump has been unwavering in his endorsement of Bitcoin and the broader crypto market during his most recent presidential campaign. Additionally, he has pledged to assist the Bitcoin mining industry if he regains authority. President Donald Trump will be attending the Bitcoin Conference 2024, which is scheduled to take place later this week, to further engage with the crypto industry.
In anticipation of a more favorable regulatory environment in the United States, Bitcoin has experienced an increase in value as a result of the betting markets’ preference for the Republican nominee in the November election. Sean McNulty, director of trading at Arbelos Markets, stated:
“Bitcoin is now a proxy for a Trump victory. For stocks, there are no such clear winners and losers from a Trump trade.”
Conversely, Vice President Kamala Harris is currently endeavoring to bridge the gap with the crypto industry. According to reports, Harris is also scheduled to attend the Bitcoin conference; however, her office has yet to verify this information.
Bitcoin Price Movement in the Future
The Bitcoin price has experienced some selling pressure, resulting in a decline to under $66,500 as of press time, despite the robust BTC distribution to Mt. Gox creditors. Ki Young Ju, the CEO of CryptoQuant, stated that there has been no significant increase in hourly spot trading volume or Bitcoin outflows on Kraken since that time. Although it is imperative to monitor the Asian trading session, the current indicators are encouraging.
In addition, CryptoQuant reported that $66,500 continues to be a critical support zone, as it has been the average purchase point for BTC holders over the past three months. If the BTC price is unable to regain this level, it may continue to decline to $63,600.