Bitcoin’s price has surged by about 9% since a reported assassination attempt on former President Donald Trump, reaching approximately $64,000. While momentum is growing, the price movement is sparking debate, with some skeptics believing the cryptocurrency is overvalued.
Before the incident, Bitcoin’s price had been declining in recent weeks due to massive liquidations by Gemini creditors, Mt. Gox creditors, and the German government. The German government has been offloading bitcoins seized in criminal activities. These liquidations are expected to subside after July, according to J.P. Morgan analysts.
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The bank’s analysts, however, caution that any recovery in the crypto market is likely to be tactical rather than the start of a sustained bullish trend. They believe Bitcoin’s price is too high, comparing it to its production cost and its vol-adjusted comparison to gold.
Bitcoin is also benefiting from increased odds of a Trump win in the upcoming election, with some investors believing his second presidency would be more favorable for the cryptocurrency due to potential regulatory changes.