Shares of New York-listed cryptocurrency firms fell on Monday, as Bitcoin‘s price dipped after surpassing the $70,000 mark for the first time since mid-June. The sell-off wiped out gains from earlier in the session when optimism driven by Republican presidential candidate Donald Trump’s pro-crypto speech had lifted stocks.
Profit-Taking and Market Volatility
Bitcoin often experiences pullbacks after reaching key milestones as investors book profits. Despite this, the crypto industry welcomed Trump’s promise of friendlier regulations. Analysts at Bernstein noted, “Any ‘Trump trade’ into the U.S. election should include a greater allocation to Bitcoin and Bitcoin-linked stocks.”
Trump’s Pro-Bitcoin Stance
Donald Trump has positioned himself as the pro-bitcoin candidate ahead of the November election. His potential return to office is seen as a significant win for an industry that frequently criticizes the current administration’s regulatory approach. Securities and Exchange Commission (SEC) Chair Gary Gensler, under President Joe Biden, has warned investors about the wild volatility and speculative nature of cryptocurrencies like Bitcoin. On Saturday, Trump pledged to fire Gensler “on day one” of his administration and proposed creating a national “stockpile” of Bitcoin using crypto assets seized by the U.S. government in law enforcement actions.
Cautious Optimism
Despite the excitement, some industry leaders urged caution. CoinCorner CEO Danny Scott remarked, “The Bitcoin strategic reserve for the U.S. is a major milestone for Bitcoin, however, it will still require Trump to win.”
Market Reaction
Crypto exchange Coinbase’s shares slipped 1.6% after climbing as much as 5% earlier. Miners such as Bitfarms, Riot Platforms, and CleanSpark fell between 3.6% and 4.4% after initial gains. Michael Saylor’s MicroStrategy, a top Bitcoin backer, also declined by 3.3%.
Global sentiment towards Bitcoin remains “incredibly positive this year,” setting the stage for what many believe could be the next bull run for 2024-25. The rapid shift of crypto from the fringes of the financial world to the mainstream has been fueled by institutional investors’ backing and the approval of exchange-traded funds tied to the spot prices of Bitcoin and Ether.
