Unlock the White House Watch newsletter for free
A guide to what the 2024 US election means for Washington and the world.
Investors are betting that Donald Trump’s incoming administration will be a boon for the crypto industry, with Bitcoin prices hitting a new record on Monday, while the dollar rose to a four-month high.
The world’s largest cryptocurrency, which has hit a series of record highs since the Nov. 5 election, surged more than 10% to $88,000 for the first time as Republicans take control of the House of Representatives. exceeded. It already has a majority in the Senate.
Bitcoin was just one of the assets that soared in the market euphoria that followed President Trump’s election victory last week. Tesla rose 9%, cryptocurrency exchange Coinbase rose 19.8% and broker Robinhood rose 7.4%. The total value of the global cryptocurrency market has exceeded $3 trillion for the first time in three years, according to crypto data provider CoinGecko.
Trump’s victory and the growing likelihood of a Republican landslide victory presents a “very unique opportunity to advance transformative legislation” that would “make the United States a world powerhouse in Bitcoin and cryptocurrencies.” said David Bailey of BTC Inc, the organizer of the Bitcoin conference. -Elect spoke earlier this year.
The Trump administration is expected to support the crypto industry, and if it gains control of both houses of Congress, it will have significant power to enact favorable legislation. President Trump and his allies in Congress have expressed support for creating a national Bitcoin reserve.
“We’re seeing absolutely bullish sentiment,” said Scott Aceicek, chief operating officer at REX Financial, which operates a series of leveraged crypto exchange-traded funds. Bitcoin has risen about 20% since last Wednesday, the first trading session after the US presidential election.
The dollar rose about 0.5% against a basket of markets on Monday, surpassing levels reached the day after the election and hitting its highest since July. The euro fell more than 0.6% to $1.063 during trading, its lowest since April.
“We can see people wanting to jump on Trump’s trade sooner rather than later,” said Emmanuel Cau, head of European equity strategy at Barclays.
The S&P 500 and Nasdaq Composite ended the day little changed.
“The market is in euphoric territory right now,” said Drew Pettit, director of U.S. equity strategy at Citi. “Optimists are winning by thinking that President Trump is friendly to markets and the economy. They ignore the argument that bad things could happen.”
Economists say Mr. Trump’s proposed policies, including steep tariffs, tax cuts, Federal Reserve meddling in monetary policy, and mass deportations of millions of immigrants, will increase the U.S. government’s budget deficit and cause it to linger for months. It warns that a drop in pressure could lead to a rekindling of inflation.
Mabrouk Chetuan, head of global market strategy at Natixis Investment Managers, said the track record of cryptocurrencies and other so-called Trump trades shows that the former president took a lighter approach to regulation during his second term. He said this shows that expectations for deaf people are increasing.
“Investors are willing to take risks despite plans to increase protectionism,” he said, referring to President Trump’s plans to significantly increase tariffs on imports into the United States. Ta.
The Republican candidate’s decisive victory prompted traders to price in his promise of tax cuts and tariffs, pushing the dollar higher and causing U.S. Treasuries to fall.
Trading in U.S. Treasuries, which has recouped much of its post-election losses, was closed due to the U.S. Veterans Day holiday.
The Financial Times reported last week that Robert Lighthizer, who served as trade envoy during Trump’s trade war with China during President Trump’s first term, has been asked to serve again. “Any clues about President Trump’s personnel could move the market,” said Jim Reed of Deutsche Bank.
The Mexican peso, which performed poorly in the run-up to the election and was very volatile on voting day, fell 1.2% to 20.41 pesos to the dollar.
Additional report from London by Shotaro Tani
