US Election Sparks Bitcoin Surge To New Peak Amid Trump’s Anticipated Return
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As the votes are being counted for the US Presidential election, financial markets around the world are already reacting. Although US stock markets are closed, key indexes ended yesterday (Tuesday) with a strong upward trend.
Whoever wins, Donald Trump or Kamala Harris, their plans may cause big shifts in the markets. Since the United States is a major player in the world economy, its elections impact markets outside the country.
As votes are counted, market confidence in a Trump win rises, shown by higher bond yields, a stronger US dollar, and stock futures. Bitcoin, too, has recently hit $75,000 for the first time.
US Dollar And Bond Yields Rise, Hinting At A Trump-Leaning Result
One clear sign of a Trump-led market move is the selling of the Mexican peso, showing a similar pattern to 2016 when Trump beat Clinton, though it is less intense this time. Back in 2016, USD/MXN jumped from 18.3 to 19.8 on election night, then rose to 20.4 the next day. Today, it has risen about 0.5 points, from 20.2 to 20.7.
This shift shows market expectations, but the smaller move suggests it is not as surprising as before. Trump’s promises about tariffs and new trade deals with Mexico might be causing this.
The US dollar has gone up, along with bond yields and Bitcoin, hinting that the vote may be leaning toward Trump. The chances for a GOP win in the House are also improving.
In a recent update, Decision Desk HQ has declared North Carolina for Trump, making it the first big swing state decided.
In Japan, the Nikkei 225 index rose by more than 1.5 percent as the election count started, reversing the yen’s decline. Charu Chanana, Chief Investment Strategist at Saxo Markets noted that very early results are improving Trump’s odds, but things could still go either way. She added that the biggest risk to global markets is a “Democratic sweep,” though that seems unlikely, or a contested result, which is still possible. Meanwhile, Hong Kong’s Hang Seng Index dropped early in the day.
Trump Gains Early Lead In Georgia, Impacting Market Trends
As results from Georgia and Florida came in, “Trump trades” continued to rise. Trump is ahead in Florida and is expected to win there. He has also taken an early lead in Georgia, which could impact markets a lot. “Trump trades” are gaining momentum as counting continues, even though there have been few surprises so far.
The US dollar has strengthened as votes are counted. Any sign of a Trump lead could boost the dollar, though currency markets are expected to be bumpy throughout election night.
Cryptocurrency markets, which stay open 24/7, have also jumped with the election excitement. Bitcoin is up nearly 5 percent, trading at over $71,000 on election day and showing strong signs of rising. Trump supports policies on cryptocurrencies. He has backing from major crypto leaders and even called himself the first “Bitcoin President” of the US.
