Trump’s crypto push: Bitcoin, Ethereum prices retract after week-long rally

Trump on Crypto: Republican presidential candidate Donald Trump addressed a Bitcoin conference on July 27, asserting that the US must dominate the cryptocurrency sector to prevent China from taking the lead. After this statement from Trump, the Bitcoin prices soared close to the key 70,000 mark.

However, in the past 24 hours, Bitcoin has dropped by 4.3 per cent in market value, while Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, has fallen by 1.35 per cent. Over the past week, ETH has decreased by 5 per cent in market value. At the time of this report, Bitcoin was trading at $66,622.65, and ETH was priced at approximately $3,338.73.

Will make USA crypto leader of the world: Trump

Speaking at the Bitcoin 2024 convention in Nashville, Trump positioned himself as the pro-cryptocurrency candidate ahead of the November 5 presidential election. Trump promised to make the US the world's cryptocurrency leader with more favourable regulations than those proposed by likely Democratic nominee Vice President Kamala Harris.

This marks a major shift for Trump, who previously dismissed the cryptocurrency as a “scam.”

Bitcoin’s weekly chart | Image credit: Coinmarketcap

The Bitcoin rally was followed by strong gains in cryptocurrencies including Ethereum, Solana, XRP, and Dogecoin.

Gary Gensler, Chair of the Securities and Exchange Commission and the Biden administration’s chief regulator for cryptocurrency has warned investors about the extreme volatility and speculative risks associated with tokens such as Bitcoin. Whereas, Trump in his statement warned that he would fire Gensler ‘One day one.’

Industry optimistic about Trump’s return

Talking about the reasons behind the slump in Bitcoin prices, Edul, CEO of Mudrex said, “Bitcoin's price reached a six-week high following Donald Trump's speech in Nashville last week. However, it subsequently fell below the $67,000 mark after the US government transferred $2 billion worth of Silk Road tokens yesterday. Currently, BTC is stabilising around $66,500. The next support level is at $65,500, while resistance is anticipated at $67,200.”

Bitcoin also surged to two-week highs right after the assassination attempt of Donald Trump which has increased the odds of the former president winning the upcoming election. Trump has positioned himself as a champion of cryptocurrency, adding to the market's optimism.
Whereas BuyUCoin’s Shivam Thakral believes that Trump’s return to power will be a positive move for the broader crypto industry. Thakral said, “With the US presidential debate showing that pro-crypto Trump has a better chance of winning the upcoming elections, investors are optimistic about the future of the world’s largest digital asset.”