One Bitcoin recently cost around 62,800 dollars (57,670 euros), around 2,000 dollars more than late Sunday evening. The price of the world’s oldest and most important digital currency had already risen significantly on Sunday following the assassination attempt on former US President Donald Trump, who is seeking re-election in November.
Before Trump was shot, a Bitcoin cost significantly less than $60,000. Experts explained the rise in price following the assassination attempt on Trump by saying that the former president is positive regarding digital currencies and that his chances of re-election have increased following the assassination attempt. A man shot the 78-year-old during a Trump campaign speech in the state of Pennsylvania on Saturday, wounding him in the ear. The perpetrator, a 20-year-old man from the region according to the FBI, was killed by security forces. Investigators have not yet identified a motive.
Fear of a glut of supply
Bitcoin has been under pressure in recent weeks. At the beginning of July, the price fell to around 53,000 dollars, following it had cost more than 70,000 dollars around a month earlier. One reason for the losses was the fear of a glut of supply. “In addition to the creditors of the insolvent Mt. Gox exchange, the German government might sell other crypto assets,” expert Timo Emden said in summing up the mood in the middle of last week.
A high supply is actually atypical for Bitcoin, the total amount of which is artificially limited. However, the insolvency administrator of the once powerful crypto exchange Mt. Gox has begun paying out Bitcoin to injured creditors that they thought they had lost. In addition, there are sales by German authorities who are getting rid of confiscated Bitcoin stocks.
US monetary policy as a burden
US monetary policy was also a burden, with no concrete signals for rapid interest rate cuts. However, recent comments by Federal Reserve Chairman Jerome Powell were interpreted as a gentle indication of impending measures. High interest rates weigh on investments classified as risky, such as digital currencies, because in this case safer securities such as government bonds also generate noticeable returns.
At the beginning of the year, there was a new hype regarding Bitcoin & Co following new types of stock exchange funds were approved in the USA. As a result, the Bitcoin price rose to a record high of almost 73,800 dollars.
