As the crypto market reacts to macroeconomic events, Trump-themed coin Political Finance (PoliFi) tokens have been riding on a rollercoaster of a volatile market since Tuesday, October 8, after China abandoned plans to roll out a stimulus package. These measures were aimed at strengthening the Chinese economic position. The sharp decline of PoliFi tokens was witnessed across the broader crypto market, with Bitcoin leading the charge.
How Politics Affects Crypto
According to CoinMarketCap, Bitcoin has been having a sluggish week, shedding 4% of its value on October 10. It later crashed below $61K on Friday Asian morning hours, demonstrating that the macroeconomic events determine the future of the king coin. Data shows that at 0908 (UTC), Bitcoin traded at $60,670, a 0.14% drop in a day. With Bitcoin showing no signs of breaking its current bond range, other coins have defied the volatile market. On-chain data shows that Ethereum, BNB, and Solana have increased by 0.80%,2.06%, and 0.94%, respectively. Concurrently, Trump meme coins, including MAGA, MAGA HAT, and TREMP, have sustained bullish weekly gains.
Trump-Themed Coins Explosively Surges
MAGA led the bullish trend, surging by 55%, accompanied by an increase in its market capitalization. As MAGA bulls resurfaced, MAGA HAT and TREMP explosively surged by 102% and 93%, marking a 7-day peak. Data indicated that PoliFi hesitated to take the bull’s action while Trump’s other meme coin rallied.
Despite its bearish momentum, PoliFi’s popularity, fueled by the US election, increased. On Polymarket, Trump was taking the lead as a suitable candidate to unseat the outgoing president, Joe Biden.
The Polymarket data indicate that the former president’s winning chances stood at 55.8% while his opponent, Kamala Harris, reached 43.8%. The increase in on-chain activities in the prediction market illustrates that the bettors are betting big on Trump’s re-election.
Source: Polymarket
Polymarket Wagerers Betting Big on Trump Win
According to Benzinga, a renowned trader and investor, Fredi9999 had invested 7 million shares in the Trump win. On the campaign trail, when the bettor expected their preferred candidate to increase their winning chance by sharing the manifesto, Fredi999’s investment reached 11 million shares.
He recently acquired hundreds of thousands of shared betting that Trump will ascend into power in November. Fredi9999 wagering tactic demonstrates that bettors are willing to risk their money to share their opinion on who should become the US’s next president.
According to Polymarket, the bettors have invested around $11 million in the 2024 presidential election. This illustrates that the long-awaited election is critical in determining the future of most financial products, including crypto and the stock market.
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