News Roundup — Bitcoin Price Suddenly Soars Over $60,000 After Trump Assassination Attempt Sends His Odds Of Victory To All-Time High

Major news stories this week:

1. Bitcoin Price Suddenly Soars Over $60,000 After Trump Assassination Attempt Sends His Odds Of Victory To All-Time High
2. China Poised to Lift Bitcoin Ban by Q4 2024, Experts Anticipate $100K BTC Surge
3. Ether Hedging Activity Picks Up as U.S. ETF Debut Nears
4. Circle CEO says EU’s MiCA crypto law ‘introduces a lot of bank risk’
5. Winklevoss twins donate $1 million in bitcoin to Sen. Warren's rival

Story Summaries:

1. Bitcoin has rocketed higher after former U.S. president and 2024 White House hopeful Donald Trump suffered an injury during an assassination attempt. The bitcoin price has topped $60,000 per bitcoin, up from lows of $53,000 earlier this month, as Trump's chances of retaking the White House in November spiked on the crypto-based Polymarket prediction platform. Trump, who was injured during a shooting at a Pennsylvania rally on Saturday, saw his chances of winning November's presidential election jump around 10-points to 70% on the Polymarket platform that allows users to bet cryptocurrency on the outcome of almost anything.
2. In 2021, China implemented a comprehensive ban on the trading and mining of cryptocurrencies, a move that sent shockwaves through the crypto market. Bitcoin, alongside other major cryptocurrencies, experienced substantial price declines. However, emerging reports indicate that China may be reconsidering its stance on Bitcoin and could potentially lift the ban by the fourth quarter of 2024. Should China reverse its Bitcoin ban, the impact on the global cryptocurrency market could be extraordinary. Financial analysts predict a surge in Bitcoin’s value, potentially reaching $100,000 by the end of the year. This prediction stems from China’s significant influence on global markets and the anticipated increase in demand for cryptocurrencies.
3. The impending debut of U.S.-based exchange-traded funds (ETF) tied to ether's (ETH) spot price has investors scrambling to the options market to hedge or protect existing market positions from price swings. Implied volatility (IV), or options-derived market expectations for price turbulence over a specific period, has ticked higher across timeframes, according to data sources Deribit and Kaiko. "The increase in IV on the July 19 contract suggests traders are willing to pay more to hedge existing positions and protect against sharp price moves in the short run. This spike in near-term contracts IV indicates a level of uncertainty among traders," analysts at Kaiko said in Monday's edition of the newsletter. Traders also expect increased ether volatility relative to bitcoin. According to data source Amberdata, the spread between Deribit's 30-day ether and bitcoin implied volatility indices (BTC DVOL and ETH DVOL) has consistently averaged around 10% since late May, significantly higher than 5% in the first quarter.
4. Stablecoin issuer Circle hopes to see changes in future European Union’s Markets in Crypto-Assets regulation. MiCA requires companies issuing stablecoins pegged to a fiat currency to hold 30% of the reserves in cash in multiple EU bank accounts, and up to 60% for significant e-money tokens. “The bank deposits introduce credit risk and counterparty risk,” said Patrick Hansen, Circle’s EU strategy and policy lead — an issue that he says is acknowledged by regulators at the European Banking Authority. “The reserve requirements of MiCA will definitely be part of the interim review next year, and then ultimately meet the MiCA review in two or three years,” Hansen said. Some experts speculate that a MiCA II regulation will follow and update the current legislation with more provisions on decentralised finance.
5. Tyler and Cameron Winklevoss said they have donated a total of $1 million in bitcoin to the campaign of John Deaton, who is running for U.S. senator from Massachusetts. Deaton hopes to unseat Senator Elizabeth Warren, whom Tyler Winklevoss called crypto's "public enemy number one" in a post to X. "She’s the chief architect and driver of the Biden Administration’s war on crypto," he said. Both brothers are donating $500,000 each in bitcoin to Deaton's campaign, they said in separate posts. Cameron Winklevoss called Deaton "pro-bitcoin" and "pro-crypto" in his post. Earlier this week, Ripple Labs donated $1 million to a new super political action committee created to help Deaton beat Warren in the upcoming election. Deaton accepts crypto donations on his official website.

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And that’s all for last week’s news! Wishing you a great week ahead!