The 'Trump Trade' and Political Events Linked to Crypto Market Resurgence 😮

Political events drive crypto market resurgence 🚀

The cryptocurrency market is experiencing a strong comeback following a series of significant political events, notably including an attempt on former President Donald Trump’s life.

Bybit Report: Political events boost crypto markets 📈

The latest Bybit Crypto Derivatives Report has revealed a direct correlation between the recent surge in the crypto market and ongoing political events. The attempted assassination of Donald Trump on July 13, 2024, sparked what is now being referred to as the “Trump Trade,” leading to a noticeable recovery in both the spot and derivatives markets.

Bitcoin and Ethereum make a rebound ⚡

Here’s how the recovery in the cryptocurrency market is shaping up for Bitcoin and Ethereum:

Open interest levels for both Bitcoin and Ethereum have stabilized to pre-sell-off conditions.
ETH futures are experiencing a significant rally in yields at shorter tenors, which is flattening the term structure.
Positive funding rates have returned in most markets, signaling a strong demand for long positions.
Short-tenor volatility in the options market has seen a surge following spot price movements.

Impact of political events on the market 🌐

The political climate continues to influence the crypto market in various ways, with notable developments including:

President Joe Biden’s exit from the presidential race introducing uncertainty about the next Democratic nominee.
Trump’s increasing chances of re-election, along with his supportive stance on cryptocurrency, boosting market confidence.
Rumors circulating about Trump potentially labeling Bitcoin as a strategic asset at the Bitcoin 2024 Conference in Nashville.