United States of America President-elect Donald Trump’s win over Kamala Harris has boosted trades tied to a Republican win. This has spurred demand for smaller-cap stocks, crypto and sectors sensitive to Grand Old Party policies.
S&P 500 futures are up, Treasury yields are surging, and the dollar’s on track for its biggest win since 2020. S&P futures rose 1.2%, while US 10-year yields jumped to a four-month high of 4.44%.
Bitcoin (BTC) joined the rally, spiking by over 8% to hit a new record touching $75,000 for the first time. Investors were betting big on Trump’s win against Harris.
Reportedly, Bitcoin has delivered high post-election returns as it gained 87%, 44%, and 145% in 2012, 2016, and 2020, respectively.
Data shows that Japanese and Australian stocks climbed, while Hong Kong slipped. Nikkei 225 gained 2.46% while S&P/ASX 200 grew marginally.
The US Dollar Index (DXY) surged 1.3% as the dollar’s safe haven appeal kicked in amid election night volatility. The Mexican peso dropped 2.8%, while the yen and euro fell by over 1.5%. As the dollar rallied, metals like copper took a hit, while oil prices dipped.
Trump and his Vice President-elect, JD Vance, have stakes in the crypto ecosystem. According to reports, Vance is a crypto investor, specifically in Bitcoin. He’s said to have invested around $500k in Bitcoin.
Bitcoin, the largest crypto, has the potential to grow bigger than ever with the support of the US’s highest-ranking officials.
Previously, under the Biden government, cryptocurrencies and crypto exchanges faced choking crypto regulations. Market analysts predict the new government will present a more convenient ecosystem for Bitcoin.
Earlier today, Bitcoin broke its all-time high of $73,750 to trade at $75,000 for a few hours. Despite many positive predictions, BTC has gone bearish several times to a no-activity pattern.
Bitcoin has traded as low as $54,000 during the past months and just a few days ago, sat at about $68,000.
Investors have banked on Fed rate cuts to create a productive environment under Trump. Recently, Trump mentioned plans to have the Fed reshuffled to ensure productivity, even suggesting an efficiency department ( D.O.G.E) run by Elon Musk.
The upcoming US Federal Reserve meeting on November 7, which is expected to result in a 25-basis-point rate cut, could boost Bitcoin’s upside potential.