SUMMARY
- Trump-themed PoliFi tokens surged as the candidate gained an edge over Kamala Harris on Polymarket.
- Crypto traders in Asia anticipate further stimulus from China’s central bank, the People’s Bank of China.
Donald Trump-themed Political Finance (PoliFi) tokens outperformed the broader crypto market this week as Trump’s chances of winning the U.S. presidential race surged. According to Polymarket, a forecast platform, his odds rose to a two-month high. Meanwhile, bitcoin experienced 4% drop-in U.S. hours on Thursday, afterward recouping in Asia, trading over $60,000 by Friday. Renewed regulatory concerns contributed to market instability, especially after inflation re-accelerated in September, pushing major cryptocurrencies like ether and dogecoin down by 6%.
Despite this common market downturn, Trump-themed tokens, including MAGA, MAGA Hat, and TREMP, saw noteworthy gains. MAGA, the most noticeable among them, surged 55% this week, pushing its market cap past $200 million. MAGA Hat rallied by 102%, while TREMP bounced 93%. These tokens belong to a bunch of political finance tokens (PoliFi) and memecoins, which gained notoriety this year. They allow traders to speculate on political results, such as the rise or fall of political figures. Polymarket’s information proposes Trump’s chances stand at 55.8%, compared to Kamala Harris’ 43.8%. More than $1.6 billion has been wagered on the upcoming November election.
However, market spectators stay cautious. Augustine Fan, head of insights at Sofa, noted that the surge in Trump’s election chances hasn’t altogether boosted overall market opinion. He proposed the focus might move toward how the release of FTX creditor claims might impact crypto investments. On a broader scale, Uniswap’s native token (UNI) gained 10%, profiting from the decentralized exchange’s launch of its Layer-2 network built on Optimism.
Elsewhere, the CoinDesk 20 index, which tracks the biggest digital resources, remained flat with a 0.5% gain. Numerous traders wait for China’s stimulus measures before making any major market moves. Reports recommend that China may present a $283 billion fiscal boost soon, and the People’s Bank of China (PBoC) has as of now started rolling out a $70.6 billion support to stabilize financial markets by allowing institutions to pledge certain resources in exchange for liquid funds.
However, For crypto investors, China’s activities might not affect Bitcoin’s direction. A paper from BCA Research indicated that China’s recent credit stimulus might not have the same enduring impact as in previous cycles, such as 2015, due to lower credit flow. In this manner, while short-term revives may happen, the long-term impact remains questionable.