Dollar Surges, Bitcoin Hits Record High as Markets Bet on Trump Victory

 

The U.S. dollar surged and bitcoin reached a record high on Wednesday, November 6, as financial markets reacted to a possible Donald Trump victory in the U.S. presidential race. Trump’s gains in key swing states have fueled expectations of policies favoring the dollar, including tax cuts, tariffs, and inflation-boosting measures.

Despite polls predicting a tight race, Trump appears to be leading Vice President Kamala Harris in crucial states such as Georgia and North Carolina, driving the so-called “Trump Trade” market rally. This trend saw the dollar climb 1.5% against the yen, reaching 154.33—the highest level since July. It also rose over 1% against the euro and more than 3% against the Mexican peso. Meanwhile, bitcoin surged by nearly $6,000 to a record $75,330.88, surpassing its previous high of $73,797.98 in March.

Trump’s campaign promises, including his vision of making the U.S. a global leader in cryptocurrency and his proposed appointment of Elon Musk to lead an audit of government spending, have fueled investor enthusiasm in digital assets. Analysts observed that bitcoin’s performance has closely followed Trump’s polling strength, with his potential victory seen as a catalyst for the digital currency’s demand.

A clean Republican sweep in Congress alongside a Trump presidency could strengthen the dollar and raise Treasury yields, spurred by anticipated tax cuts and tariffs. However, such policies may heighten inflation, potentially complicating Federal Reserve Chair Jerome Powell’s efforts to stabilize prices.

Global markets saw mixed reactions, with Tokyo’s Nikkei up over 3% as exporters benefited from a weaker yen, while markets in Shanghai, Sydney, and Singapore also rose. In contrast, Hong Kong’s Hang Seng Index fell 2%, as concerns mounted over possible U.S.-China trade tensions if Trump takes office. China remains watchful of the election’s impact, as a Trump victory could increase tariff pressures, affecting its economic outlook amid a debt crisis in its property sector.

The U.S. election results come at a critical time for China, where top officials are discussing economic strategies to support growth in response to the property sector challenges.