Trump Fuels Crypto Surge Amid Rising Geopolitical Tensions

Political turbulence sparks digital gold rush as traditional markets wobble

Market Mechanics Unleashed

Bitcoin rockets 15% overnight while Ethereum notches 12% gains—traders flock to decentralized assets as Trump's latest trade war escalates. The former president's aggressive stance against China sends traditional finance scrambling for alternatives. BNB smashes through resistance levels, hitting new ATH as Asian markets open.

Safe Haven Narrative Strengthens

Gold's boring cousin suddenly looks revolutionary. Institutional money pours into crypto ETFs at record pace—$2.3 billion weekly inflows dwarf last month's totals. The FSA quietly expands digital asset classifications while mainstream media still debates whether crypto is 'real.'

Regulatory Winds Shift

Washington's sudden crypto embrace feels suspiciously convenient—nothing like a good crisis to make regulators forget their previous objections. Banking lobbyists suddenly discover blockchain's 'innovative potential' after years of calling it a scam.

Digital assets proving more resilient than their critics—and maybe more honest than their political champions.

Following Trump’s escalation of tensions, a recurring scenario resembling previous chaos periods is unfolding. There’s a tangible return to a potential agreement phase and a conducive period for the rise of cryptocurrencies. Bitcoin (BTC)$115,272 prices have exceeded $115,000, yet the key $117,000 zone remains unreclaimed. What are the expectations, and what’s the current situation?

Rise of Cryptocurrencies

The anticipation of a trade agreement between the US and China has fueled a rise in cryptocurrencies. As previously indicated by Bessent, discussions were ongoing, and with the world preferring stability over chaos, consensus seemed inevitable. Although this presents a lucrative streak for cryptocurrencies, it is far from over.

The Federal Reserve’s recent rate cuts and the upcoming earnings reports from tech giants are bolstering stock markets. The Optimism surrounding tech companies mirrors that seen in cryptocurrencies, thereby driving Bitcoin and others upward.

Prior to the US market opening, S&P 500 futures saw a roughly 1% increase. Following a series of agreement announcements by US and Chinese officials ahead of Trump’s meeting with Xi, the developments were unsurprising. Should nothing significant arise on Thursday, TRUMP and Xi will meet, with pre-meeting agreements being essential due to their limited time for negotiation.

Expectations from the Fed and Cryptocurrencies

As Gold and treasury bonds weaken, cryptocurrencies are poised to commence November in a favorable environment. Copper, viewed as a key indicator of economic growth, approaches new all-time high levels. Interestingly, Treasury Secretary Bessent mentioned potential candidates for future Fed chairmanship, including Waller, Warsh, Hassett, Bowman, and Rieder.

The Fed is expected to implement a new rate cut, and Powell is set to leave in May. While inflation remains at reasonable levels according to the latest report, employment figures raise concerns. Thus, if expectations FORM for over two rate cuts by May, markets could continue to rise throughout the year, anticipating quicker easing post-Powell.

Ethereum (ETH)$4,150 remains above $4,100, though many altcoins haven’t sufficiently rallied from their lows. While reclaiming significant support levels is positive, altcoins require more good news to surpass resistances. Amidst this, Russia’s steps towards peace, considering the weight of additional sanctions, could offer extra support for cryptocurrencies.