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MAGA Coin (TRUMP), a meme coin inspired by Donald Trump, the 45th president of the United States and a leading candidate in the upcoming November Presidential elections, surged by 46.9%, following an assassination attempt on Trump during a rally in Pennsylvania.
Following the incident, the price of MAGA Coin skyrocketed from $6.31 to $10.36, causing its market capitalization to grow from $293 million to $469 million in less than 45 minutes. However, at the time of reporting, the memecoin is currently valued at around $9, according to CoinGecko data.
MAGA Coin is the largest Trump-themed meme coin in price and market capitalization. The assassination attempt also spurred price increases in other Trump-themed meme coins. Tremp (TREMP), a Solana-based meme coin, witnessed a 63% surge in price shortly after the incident. Similarly, MAGA Hat (MAGA) saw a brief 21% spike.
How Did the General Market React?
Following the incident, the Nasdaq set 35 new records since the start of the year, and S&P has set more than 25 new record highs. Bitcoin, the biggest cryptocurrency in the world, went up on Sunday after the attempt on Trump’s life. It was worth 3.84 percent more at $60,249.42 at 10:12 a.m. UAE time on Sunday, while Ethereum was worth 2.09 percent more at $3,198.18. After the event, other coins like Dogecoin, Solana, and Shiba Inu also increased in value.
Reuters reported earlier this month that Trump said on his Truth Social site in June, “We want all the remaining Bitcoin to be MADE IN THE USA.” Late this month, he was also meant to speak at a Bitcoin gathering in the US. Bitcoin has since reclaimed $64K but now seems to be consolidating again as the week approaches a close.
Vijay Valecha, chief investment officer of Dubai-based Century Financial, says the price of Bitcoin has gone up because Trump supports cryptocurrencies.
“Donald Trump has clarified that he supports Bitcoin mining and letting people keep their digital assets.” “He has said that if he is re-elected as president, his administration will not use regulatory power to stop people from using Bitcoin and other cryptocurrencies,” Mr. Valecha said.
It is believed that gold, the US dollar, and bonds will all do well because they are safe havens. When markets ended on Friday, the price of an ounce of gold was $2,411.43; it will likely reach new highs later this year because people still want to buy it.
Bank of America said in a note last month that they thought the price of gold could reach $3,000 an ounce in the next 12 to 18 months because more and more people want to buy it. Companies that gain from Trump’s policies, like those that build things and make weapons, could be among the winners. He also said that small-cap stocks would do well because they have done well when Republicans were in power.
Besides tech stocks, real estate and energy stocks related to oil and gas are also likely to do well since Trump has supported their growth.
Trump’s Stance on Crypto
Donald Trump is perceived as a pro-cryptocurrency candidate and enjoys significant support from the U.S. crypto community. This support marks a turnaround from his earlier anti-crypto views. MAGA Coin (TRUMP) belongs to the PoliFi category of crypto assets, and its price is often influenced by developments leading up to the November presidential elections.
Trump’s current pro-crypto stance starkly contrasts the current administration’s crackdown on the industry and his own previous position. The Biden administration has targeted crypto-related entities, from digital-asset trading platforms and their banking partners to Bitcoin miners. In contrast, Trump is now a vocal supporter of digital assets.
In 2019, Trump tweeted a critical view of Bitcoin and other cryptocurrencies. However, he has recently embraced the sector, even planning to speak at the Bitcoin 2024 event in Nashville on July 27. This event is a significant gathering for the crypto community, highlighting the importance of his support.
The crypto industry is optimistic that a new Trump administration will introduce a friendlier legal framework. A key focus is on the Securities and Exchange Commission (SEC), currently seen as the industry’s main antagonist under Gary Gensler’s leadership. The SEC has launched lawsuits against several crypto firms, including Coinbase Global Inc., and complicated the IPO processes for companies like Circle and Kraken.
Influential figures, including Ohio Republican Senator JD Vance, a longtime crypto advocate, and billionaire Elon Musk, are backing Trump’s newfound support for crypto. These supporters advise Trump on crypto policy and make significant financial donations. Musk, for instance, is pledging $45 million monthly to a political group backing Trump.
In a market driven by narratives, Trump’s pro-crypto stance is expected to create positive catalysts. He has promoted Bitcoin’s benefits on social media following a meeting with crypto-mining executives at Mar-a-Lago. The involvement of high-profile supporters and the potential for a regulatory shift will likely push the crypto hype to new levels.
According to Bank of America, young investors allocate about half of their portfolios to cash and alternatives, including cryptocurrencies. This trend reflects the growing interest in digital assets among the younger demographic.