As the U.S. presidential election results trickled in on Wednesday, the dollar experienced a notable surge while Bitcoin reached a historic high. This movement came as traders anticipated a win for Donald Trump, who appeared to be gaining traction in several key swing states, sparking market responses tied to potential economic changes under his administration.
The financial landscape showed strong reactions to Trump’s early leads, particularly as he captured important states like Georgia and North Carolina, with other pivotal states remaining too close to call. Many investors viewed Trump’s advancing position as a signal for policies likely to boost corporate profits through tax cuts and deregulation, spurring a buying wave of U.S. assets. In parallel, the dollar strengthened significantly, reaching its highest level against the yen since July and gaining ground against both the euro and the Mexican peso.
Bitcoin’s performance also caught attention, as it surged nearly $6,000 to an unprecedented value of $75,330.88. Investors have closely linked Trump’s progress to a rise in cryptocurrency prices, noting his stated ambitions to establish the U.S. as a “Bitcoin and cryptocurrency capital of the world.” The digital currency saw increased demand with expectations of a favorable policy environment under a Republican administration.
Global stock markets mirrored the volatility. In Tokyo, the Nikkei 225 climbed over 2% as the weaker yen boosted major exporters. In contrast, Hong Kong’s Hang Seng Index dropped sharply, reflecting concerns over Trump’s stance on China, including his promise to increase tariffs on Chinese goods.
This election unfolds alongside the Federal Reserve’s anticipated policy decision, set to be announced on Thursday, with discussions around a potential interest rate cut of 25 basis points. Analysts believe that a Trump-led government could drive inflationary pressures, adding a challenging layer for Federal Reserve Chair Jerome Powell, who remains focused on tempering inflation levels.
Amid the global market fluctuations, Wall Street provided a strong lead, with the Dow Jones rising over 1% on optimism surrounding Trump’s economic policies.
