Bitcoin Sets Eyes On $70K in July Amid ‘Trump Trade’ Euphoria

Bitcoin’s (BTC) price briefly surged above $66,000 for the first time in over three weeks, helped by the ongoing “Trump Trade” euphoria. The cryptocurrency has since undergone a minor correction but keeps its eyes on the broader upside target of $70,000 in July.

Donald Trump’s Winning Odds Boost Bitcoin Appeal

The price of Bitcoin has surged by circa 8.75% this week, eclipsing the selloff pressure led by the recent 50,000 BTC sales by the German government. Its latest gains come after weaker-than-expected U.S. inflation data last week heightened expectations of lower Federal Reserve borrowing costs, which tend to boost non-yielding assets such as stocks and cryptocurrencies.

Bitcoin climbed further following the weekend’s assassination attempt on the pro-crypto U.S. presidential candidate, Donald Trump, which boosted his market odds of a second presidency in November 2024.

The former president’s tariff plans and tax-cutting agenda may increase the U.S. budget deficit and inflame geopolitical tensions. This could fuel longer-term inflationary pressures and enhance Bitcoin’s appeal as a hedge against traditional financial instability and geopolitical uncertainty.

For instance, the U.S.-based Bitcoin exchange-traded funds (ETFs) have witnessed over $720 million worth of inflows since the assassination attempt on Trump, reflecting a growing “Trump Trade” euphoria.

Bitcoin ETF net flows. Source: Farside InvestorsSimply put, investors are placing bets on stocks, bonds, currencies, and other assets that might benefit from or be negatively impacted by a potential second Trump presidency.

Gold, Bitcoin’s closest “safe-haven” competitor, surged to an all-time high amid the same “Trump Trade” euphoria this week.

Bitcoin Heads Toward $70,000 Next

From a technical perspective, Bitcoin’s recent price gains are part of a rebound that began after testing the lower trendline of its current descending channel as support. In doing so, the cryptocurrency has closed above two key exponential moving average (EMA) resistances: the 50-day EMA (the red wave) and the 200-day EMA (the blue wave).

Holding above the 50-day EMA increases Bitcoin’s odds of furthering its recovery in the coming days. As the cryptocurrency does, its primary upside target comes to be around the upper trendline of its prevailing descending channel pattern.

This level aligns with circa $70,000, up over 9% from the current price levels.