Investors observe a significant surge in Argo Blockchain shares, reflecting a broader crypto market rally.
- This rise is attributed to Donald Trump’s potential US presidential victory, which is seen as favourable for cryptocurrencies.
- The Bitcoin price saw an uptick of over 7% as it tracked Trump’s improving odds in the election polls.
- Other crypto-related stocks also benefited, including Coinsilium and KR1, amidst a broader market uplift.
- Economic factors such as a weaker pound further contributed to gains across certain stocks in the FTSE 100.
Shares of Argo Blockchain experienced a remarkable increase, climbing up to 17% to 11p during early trading hours in London. This surge is part of a wider positive trend among crypto businesses, spurred by the prospect of Donald Trump’s victory in the US presidential election. Trump’s promise to establish the US as a ‘bitcoin and cryptocurrency capital’ has resonated with investors, who view him as a crypto-friendly candidate.
The optimism surrounding Trump’s candidacy coincided with a notable rise in Bitcoin prices, exceeding 7% as the news of his potential victory circulated. Analyst Russ Mould from AJ Bell noted that the market’s response indicates speculation that a Trump administration would boost cryptocurrency demand. The trajectory of Bitcoin’s price closely mirrored Trump’s standing in the polls and betting markets, reflecting investor sentiment.
Beyond Argo Blockchain, other notable increases were observed in crypto and Web3-associated investments. Coinsilium, an investor in decentralised technologies, saw its shares rise by 9.4%, while blockchain investor KR1 reported a 3% uptick. This momentum is underpinned by a belief that a change in US leadership could herald a more favourable regulatory environment.
The crypto market’s fluctuating landscape saw a particularly tumultuous period during the Biden administration, with Bitcoin prices dropping as low as $17,000 by late 2022. This downturn followed a series of collapses within key crypto entities, highlighting regulatory challenges. Trump’s candidacy has rekindled hopes for less stringent regulatory measures, encouraging renewed interest among investors.
Economic dynamics, including the pound’s depreciation against the dollar, have also affected UK-based stocks with significant US market exposure. The FTSE 100 has seen gains, particularly in sectors like hospitality and banking, as exemplified by rising shares in companies such as Intercontinental Hotels Group, Barclays, and Rolls-Royce. This reflects a broader optimism in the financial markets, partially propelled by Trump’s electoral prospects.
The potential for a Trump presidency appears to be a catalyst driving renewed optimism and activity within the cryptocurrency sector and related markets.
