Bitcoin skyrockets to $75,000 as Trump gains ground toward victory
Bitcoin surged to an all-time high of $75,000 on Wednesday, buoyed by rising investor confidence in Donald Trump’s possible return to the White House.
As Trump captured crucial swing states, investors responded favorably, speculating on the economic impact of his proposed policies, including tax reductions, increased tariffs, and growth driven by inflation.
Though the race remained close, Trump appeared to gain momentum against Vice President Kamala Harris, with both candidates securing wins in their key support areas. Yet, Trump’s lead in swing states like Georgia, North Carolina, and Pennsylvania gave a powerful boost to the so-called “Trump Trade.”
The possibility of Republicans regaining Senate control further energized markets, with traders expecting sweeping tax cuts, fewer regulations, and more tariffs to support the dollar.
The greenback strengthened by 1.5%, reaching its highest value since July at 154.33 yen, and saw gains against both the euro and the Mexican peso.
Bitcoin mirrored this trend, rising over $6,000 to surpass its previous peak, reaching $75,371.69.
Analysts see Bitcoin’s rally as a reflection of investor enthusiasm for Trump’s policies, with many viewing a Republican-led government as favorable for digital currencies.
Trump’s promise to make the US a global “bitcoin and cryptocurrency capital” resonated with traders, who also anticipate his focus on technological progress with figures like Elon Musk.
Experts predict a Republican sweep could push growth and inflation higher, boosting the dollar and Treasury yields, though some warn of potential market volatility depending on the scope of Trump’s policy changes.
The Federal Reserve also faces new challenges as Trump’s economic plans may fuel inflation, complicating its policy efforts.
Meanwhile, strengthened by a rising dollar, US stock markets showed gains across major indices, though Asian markets presented mixed results amid concerns over a potential trade war with China under a Trump administration.
Despite positive trends in markets such as Tokyo and Sydney, Hong Kong’s market fell sharply, driven by fears of heightened tariffs on Chinese goods ahead of a significant economic meeting in China to discuss stimulus measures as the country faces a debt crisis.
As the election unfolds, traders continue to adjust their positions, navigating a complex political and economic landscape.
– Key figures around 0710 GMT –
Dollar/yen: UP at 154.21 yen from 151.60 yen on Tuesday
Euro/dollar: DOWN at $1.0711 from $1.0930
Pound/dollar: DOWN at $1.2853 from $1.3035
Euro/pound: DOWN at 83.32 from 83.82 pence
Tokyo – Nikkei 225: UP 2.6 percent at 39,480.67 (close)
Hong Kong – Hang Seng Index: DOWN 2.6 percent at 20,467.69
Shanghai – Composite: DOWN 0.1 percent at 3,383.81 (close)
West Texas Intermediate: DOWN 1.9 percent at $70.59 per barrel
Brent North Sea Crude: DOWN 2.0 percent at $74.03 per barrel
New York – Dow: UP 1.0 percent at 42,221.88 (close)
London – FTSE 100: DOWN 0.1 percent at 8,172.39 (close)
