- Trump’s victory drives the dollar and Bitcoin to new highs.
- Pro-business policies are expected to increase inflation and market instability.
Following forecasts that Donald Trump would win the presidential election, the US dollar rose and Bitcoin achieved a new high. Investors are betting on Trump’s prospective policies, such as tax cuts, higher tariffs, and pro-cryptocurrency positions, to signal future crises in the global economy. The Republican Party has also won control of the Senate.
The US dollar rose by around 1.4% against key currencies, affecting the pound, euro, and Japanese yen. Meanwhile, Japan’s benchmark Nikkei 225 closed 2.6% higher, while Australia’s ASX 200 rose 0.8%. The Dow Jones, S& P 500, and Nasdaq all closed more than 1% higher, indicating that the US stock market will open strongly.
Bitcoin Hits Record High Amid Market Optimism
Bitcoin’s value rose by $6,000 to a record high of $75,371.69. This new high comes after Trump vowed to turn the United States into a cryptocurrency hub, which contrasts significantly with the Biden administration’s regulatory approach. Trump has signaled an interest in removing SEC Chair Gary Gensler, whose stringent cryptocurrency policies have sparked criticism from industry proponents.
Additionally, Trump intends to appoint Elon Musk to conduct an audit of government spending, indicating his pro-crypto intentions. Musk, a noted Bitcoin supporter, saw his Frankfurt-listed Tesla shares jump more than 14% on Wednesday.
Trump’s projected tariff increases, especially in China, have already raised concerns among global economies. NIESR’s Ahmet Kaya cautioned that Trump’s trade policies could reduce UK economic growth to 0.4% in 2025, down from 1.2%. In Asia, the possibility of rising tariffs is causing concern about export repercussions, notably in the technology industry, which relies on Taiwan’s chip output.
Bond rates in the United States have risen, with analysts forecasting that Trump’s fiscal measures will boost inflation and lead to a rate reduction. Investors will also be waiting for the Federal Reserve’s interest rate announcement and Jerome Powell’s remarks on Thursday, as Chinese officials prepare to deliver economic recovery details on Friday.
All of this happened, and at the time of writing, Bitcoin (BTC) is trading at $74,259, up 7.69%, with a market capitalization of $1.47 trillion and a 24-hour trading volume of $105.38 billion.
