An assassination attempt on former U.S. President Donald Trump during a campaign rally in Butler, Pennsylvania, on Saturday has created market jitters as the new week begins.
In response to the incident, markets are witnessing a shift towards more stable investments such as gold, while some traders are turning to Bitcoin. Following the attack, Bitcoin surged past $60,000. The assassination attempt resulted in the death of one spectator and critically injured two others. Trump remains unharmed, and the alleged shooter, identified as 20-year-old Thomas Matthew Crooks, is deceased, according to a statement from the U.S. Secret Service. Trump is still expected to speak at the Republican National Convention in Milwaukee this week.
Traders are likely moving to Bitcoin for various reasons. Some believe the assassination attempt might bolster Trump’s chances of winning the upcoming U.S. presidential election in November, while others may be reacting instinctively to the political instability.
This election year, Trump has positioned himself as a “crypto candidate” and has stated he would accept donations in Bitcoin, Ether, Dogecoin, Solana, and other cryptocurrencies. This marks a significant shift from his previous stance, where he denounced Bitcoin as a “scam against the U.S. dollar.” Nonetheless, he has garnered support from cryptocurrency leaders and the crypto community ahead of the November vote.
Outside the crypto markets, traders are expected to gravitate towards safe-haven assets like gold and the Swiss franc, which are less susceptible to political and economic uncertainty.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, told Yahoo! Finance, “This weekend’s events will likely cause increased volatility at the market’s open on Monday, both in stock and bond markets. We expect a flight to safe havens like the Swiss franc and gold. Bitcoin has shown a positive reaction due to a kneejerk flight to safety.”
Another asset under scrutiny is Trump Media stock, which has been highly volatile since its debut in late March. It was up just over 1% in after-hours trading on Sunday at the time of publication.