The dollar surged and Bitcoin reached an all-time high on Wednesday, November 6, as markets increasingly leaned towards a Donald Trump victory in the U.S. presidential election. With Trump winning key swing states, expectations soared for fresh tax cuts, tariffs, and policies that could drive inflation—benefiting the greenback.
Despite polls predicting a close race, Trump appeared to outperform his Democratic rival, Vice President Kamala Harris, as votes were counted. His victories in critical states like Georgia and North Carolina sparked a rally in markets, fueled by the so-called “Trump Trade.”
The dollar rose 1.5% to 154.33 yen, its highest level since July, and also gained over 1% against the euro and more than 3% against the Mexican peso. Meanwhile, Bitcoin surged nearly $6,000, reaching a record $75,330.88, surpassing its previous high of $73,797.98 in March.
Trump’s promises to make the U.S. the “bitcoin and cryptocurrency capital of the world” and appoint tech mogul Elon Musk to audit government spending have driven investor enthusiasm for digital currencies. Analysts observed that Bitcoin’s rise has mirrored Trump’s polling strength, with a Republican victory potentially driving greater demand for digital assets.
A potential GOP sweep of Congress and the White House is expected to boost the dollar and Treasury yields, largely due to Trump’s tax cuts and tariff plans. However, these policies could increase inflation, presenting challenges for Federal Reserve Chair Jerome Powell, who is focused on controlling rising prices.
Global markets reacted in mixed ways, with Tokyo’s Nikkei jumping more than 3% as exporters benefited from a weaker yen. Other Asian markets, including Shanghai, Sydney, and Singapore, also posted gains. However, Hong Kong’s Hang Seng Index dropped by 2%, reflecting concerns over U.S.-China trade tensions under a potential Trump presidency.
China is watching closely, as a Trump win could escalate trade friction, potentially affecting its economy. The election coincides with a crucial meeting of Chinese leaders, who are formulating strategies to support growth amid a mounting property debt crisis.
