The dollar surged and Bitcoin reached a record high on Wednesday, ahead of Donald Trump’s claim of victory in the US election. Traders increased their bets on the prospects of fresh tax cuts, tariffs, and rising inflation as results came in.
Although polls had indicated a tight race, Trump outperformed his Democratic opponent, Vice President Kamala Harris. Both candidates secured wins in expected safe states, but early signs that the business tycoon was on track for a second term fueled the so-called “Trump Trade.”
While Trump’s victory was not yet official, he declared it in a speech in Florida, stating, “We are going to help our country heal… We have a country that needs help and it needs help very badly.”
The news of his party gaining control of the Senate increased the likelihood of sweeping tax cuts, more tariffs, and deregulation—measures seen as favorable for the dollar. The greenback surged by 1.5 percent to 154.38 yen, its highest level since July, while also rising more than one percent against the euro and over three percent against the Mexican peso.
Bitcoin skyrocketed by $6,000, reaching a new record of $75,371.69, surpassing its previous high of $73,797.98 set in March. Trump had previously pledged to make the US the “bitcoin and cryptocurrency capital of the world” and suggested placing tech billionaire Elon Musk in charge of auditing governmental waste.
According to Russ Mould, an analyst at AJ Bell, the price of Bitcoin had closely followed Trump’s polling numbers and betting market positions, with investors potentially expecting that a Republican victory would lead to increased demand for the digital currency.
