Argo Blockchain sees significant gains as markets react to expectations of a Trump victory.
- In London, Argo Blockchain’s shares jumped by 17% in early trading, marking one of their biggest single-day increases this year.
- Other crypto-related stocks, such as Coinsilium and KR1, also experienced notable gains as Bitcoin climbed over 7%.
- The rally follows news that Donald Trump, viewed as crypto-friendly, is poised for a potential presidential win in the US.
- Investors are anticipating deregulation in the crypto sector, spurred by Trump’s supportive stance on cryptocurrency.
The day started with remarkable gains for Argo Blockchain, as its shares increased by 17% to 11 pence in London trading, driven by the prospect of Donald Trump securing the US presidency. Other related stocks, including decentralised technologies investor Coinsilium and blockchain investor KR1, also saw significant increases of 9.4% and 3%, respectively. This surge is seen in parallel with Bitcoin prices climbing over 7% as Trump’s path to victory became clearer.
Trump has gained a reputation as a proponent of cryptocurrency, having promised to make the United States a global hub for Bitcoin and cryptocurrencies. He announced the launch of his digital currency platform, World Liberty Financial, which has further bolstered confidence among crypto investors. Russ Mould, an analyst at AJ Bell, noted, “The price of bitcoin has closely followed Trump’s position in the polls and on betting markets,” suggesting that investors anticipate increased demand for digital currency under Republican leadership.
This rally contrasts with the volatile nature of crypto pricing during President Biden’s term, where numerous crypto entities faced setbacks, including the collapse of the FTX exchange and Three Arrows Capital. However, while prices rebounded past 2021 highs of $64,000, regulatory pressures remained a challenge. Enforcement actions from the Securities and Exchange Commission almost doubled in 2023 compared to 2021, indicating a regulatory clampdown.
Given the existing constraints, Trump’s stance on crypto and marijuana decriminalization has ignited optimism for reduced regulation. OKX’s Chief Commercial Officer, Lennix Lai, mentioned, “Today’s all-time high, driven by a likely Trump election win, signals that we are in the midst of a potential paradigm shift into the next phase of growth for crypto.” Alongside crypto, shares in cannabis-related businesses have benefited, with Mendell Helium, a CBD and hemp oil provider, experiencing a 23% share price increase.
The UK’s markets responded to these developments with a 1.4% rise in the main London index, partly due to the pound’s 1% decline against the US dollar. Stocks heavily tied to the US market, such as hotel group IHG, saw a rise of over 5%, while Barclays and Rolls-Royce also posted gains of 4.6% and 4%, respectively.
The prospect of a Trump presidency catalyzes optimism across crypto and certain stock sectors, influenced by his supportive stance on deregulation.
