Bitcoin mining stock analyst discusses ‘Trump Bump’
Analysts
from
H.C.
Wainwright
believe
the
market’s
positive
reaction
to
crypto
suggests
increased
confidence
in
Republican
presidential
candidate
Donald
Trump’s
election
prospects.
This
confidence
comes
because
Trump
is
known
for
his
pro-crypto
stance,
particularly
his
support
for
Bitcoin
(BTC)
mining
in
the
U.S.
Following
a
failed
assassination
attempt
on
Trump
during
a
campaign
rally
in
Butler,
Pennsylvania,
on
Saturday,
July
13,
Bitcoin
and
BTC
mining
stocks
saw
a
notable
surge.
BTC
rallied
over
9%
since
the
incident,
reaching
a
high
of
approximately
$63,790
on
Monday,
while
mining
stocks
gained
around
10%
in
Monday’s
session.
“Many
believe
the
tragic
event
immediately
boosted
Trump’s
odds
of
winning
the
election
in
November,
and
given
Trump
is
widely
viewed
as
the
pro-crypto
candidate,
who
has
come
out
and
publicly
supported
Bitcoin
mining
in
the
U.S.,
the
markets
rallied
following
the
failed
attempt,”
wrote
Mike
Colonnese,
CFA.
Selling
pressure
This
price
boost
coincides
with
the
end
of
selling
pressure
from
the
German
government,
which
liquidated
its
remaining
50,000
BTC
seized
from
the
Movie2k
case.
The
overhang
on
BTC
prices
was
alleviated,
with
U.S.
spot
BTC
ETFs
seeing
over
$1
billion
in
net
inflows
last
week,
acquiring
over
18,000
BTC.
Furthermore,
high
on-chain
selling
pressure
was
partially
due
to
the
commencement
of
long-awaited
Mt.
Gox
repayments.
In
2010,
Mt.
Gox
became
the
world’s
largest
Bitcoin
exchange
but
faced
a
significant
setback
in
2014
when
it
halted
trading,
filed
for
bankruptcy,
and
disclosed
the
loss
of
approximately
850,000
BTC
due
to
thefts.
Recently,
the
movement
of
47,228
BTC
from
a
Mt.
Gox-associated
cold
wallet
has
triggered
market
reactions,
while
miners’
selling
pressure
continues
to
affect
prices
following
a
recent
halving
that
reduced
mining
rewards
by
50%.
Increased
hash
rate
In
the
week
ending
July
7,
BTC
rallied
8.7%
to
$61,015,
outperforming
broader
equity
indices.
The
network
hash
rate
increased
by
2.7%
to
598
EH/s,
while
network
difficulty
remained
at
79.5T
following
a
5%
adjustment
on
July
4.
H.C.
Wainwright
company
filings.
Higher
BTC
prices
compensated
for
lower
transaction
fees,
raising
hash
prices
by
5.2%
to
$0.049/TH/day,
regaining
the
$0.05/TH/day
mark
for
the
first
time
in
three
weeks.
Comments are closed.