5 minsBitcoin is rising on Friday, recovering some of the losses from earlier in the week. The market is looking ahead to US inflation data and an address by Republican presidential nominee Donald Trump at the Bitcoin conference this weekend.
Bitcoin was caught up in the risk-off mood across global financial markets this week as investors sold out of risk assets across the board. The tech-heavy Nasdaq fell almost 4% on a single day—its worst daily performance since 2022. However, that trend appears to be easing somewhat on Friday, with stocks and Bitcoin heading higher.
July has been a mixed month for the cryptocurrency market. Bitcoin rose 13% the previous week but is set to end this week flat. Meanwhile, Ether rose 10% last week but is set to fall 7.5% this week. Several factors have been driving the moves, including the start of Ethereum ETF trading and a focus on the upcoming US elections. Rising expectations that the Fed will cut interest rates in September have also boosted demand for the cryptocurrency.
Trump’s keynote address at the Bitcoin Conference
Former president and republican nominee Trump is scheduled to speak at the Bitcoin conference in Nashville on Saturday. His appearance comes as the former president has maintained a pro-crypto stance across his campaigning efforts and has declared himself “the crypto candidate.”
The crypto community is keen to see what Trump has to say about crypto and will be watching closely to see if he maintains this supportive rhetoric during the address. He has not yet declared how he plans to support the growth of cryptocurrency and blockchain through policies, although he did meet with miners last month and supported the view that Bitcoin should be created in the US. The market will also be looking to see whether Trump plans for more regulatory clarity in the US crypto industry and if it could be made a strategic reserve. These developments could send Bitcoin significantly higher.
Speculation that Trump could return to the White House helped Bitcoin rally last week. Trump was seen as leading in the approvals after a failed assassination attempt earlier in the month.
However, since then, the Democratic frontrunner Kamala Harris, who President Biden endorsed after he announced he was no longer seeking re-election, has narrowed the gap with Trump, according to polls this week. A Harris presidency could see the government regulatory crackdown on crypto continue.
These polar positions in the two candidates highlight how crypto has emerged as a political topic and represent a significant U-turn from Trump, who just a few years ago denounced Bitcoin as very dangerous and a disaster waiting to happen. In contrast, this year, Trump’s campaign is accepting donations of Bitcoin, Ether, Dogecoin, Solana, and other cryptocurrencies. His vice president running mate, J.D. Vance from Ohio, is also a cryptocurrency-friendly leader with significant Bitcoin holdings.
Like Trump, other big names such as Ark Investments’ Cathy Wood and Micro Strategies’ Michael Saylor are among those expected to attend their largest Bitcoin conference.
In addition to Bitcoin and the broader crypto market, investors will also be watching Trump-related coins such as MAGA, TRUMP2024, and DONALD.
Chart MAGA (24 hrs)
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