Trump's trade truce eases pressure on tokens, tech giants outperform Bitcoin

According to the Wisdom Financial APP, Bitcoin missed the cross-asset rebound triggered by the dovish comments from the Federal Reserve. As the competition in the U.S. presidential election intensifies, there are doubts about whether Donald Trump has a chance to implement his agenda supporting cryptocurrencies. On Wednesday, Bitcoin fell by 2.4%, marking one of the largest declines since 2024, lagging behind the surge in the seven major tech stock indices driven by the expected actions of the Federal Reserve. By Thursday, Bitcoin further declined, with the trading price at $64,299 at the time of writing. After the Republican candidate promised to make the U.S. the "capital of cryptocurrencies on Earth and a superpower of Bitcoin," Bitcoin has become a representation of Trump's chances of returning to the White House. However, the Democratic candidate Kamala Harris has also gained significant popularity among young people, Black Americans, and Hispanic voters. In the market predicting political outcomes, Harris currently has higher odds of winning than Trump. Harris's campaign team has not yet detailed their stance on digital assets. Noelle Acheson, the author of the newsletter "Crypto Is Macro Now," marked Harris's "rising wealth" as a "potential dampener" on digital asset prices due to "political factors." Kyle Doane, the trading director at Arca, stated that the recent weakness in Bitcoin may stem from Harris's "slight rise in support in opinion polls." The volatility of Bitcoin indicates that the market has been reflecting more broadly on previous Trump trades. Last month, when the former president seemed more likely to win the November U.S. election, such trades became the focus of attention. In addition to political factors, the recent crypto market has also been impacted by other risks, such as the possibility of the U.S. government disposing of seized Bitcoins and the potential sale of recovered tokens by some creditors of the collapsed Mt. Gox exchange. Federal Reserve Chairman Powell hinted on Wednesday that the Fed would cut interest rates in September unless inflation progress stalls. The prospect of loose monetary policy has driven the rise in the U.S. stock and bond markets. Thanks to the inflow of funds from Exchange-Traded Funds (ETFs) in the U.S., Bitcoin has risen by over 45% this year. In March, two months after the ETF listing, Bitcoin reached a historical high of $73,798, but its momentum has since cooled down