Victor EzejaThe victory of Donald Trump, in the United States 2024 Presidential election has triggered a significant surge in the value of dollars and Bitcoin in the financial market.
Analysts attribute the development to the fact that investors are placing bets at Trump’s proposed tax and tariff cuts will increase inflation and slow down interest rate cuts.
Join our WhatsApp ChannelInvestors who hold savings and investments in dollars will benefit from higher rates for longer periods of time.
Trump, 78, made a historic political comeback to the White House after losing re-election bid in 2020. Undeterred by challenges such as court cases to stop his nomination, assassination attempts during campaigns and adversarial narratives, Trump successfully defeated his rival Democrat Candidate, Vice President Kamala Harris in an election that was keenly contested.
Major stock markets currencies around the world recorded a significant change on Wednesday, 6 November following the US presidential election news.
According to a Reuters report, U.S. S&P and Nasdaq futures rose by more than 2%.
READ ALSO: Trump’s Win – Media As Victim Of Its Agenda Powers
The dollar rose by about 1.4% against different currencies, including the Great Britain Pound (GBP), Euro and the Japanese yen.
FTSE 100 index, which comprises the biggest UK-listed firms, saw a 1% increase on Wednesday afternoon.
The benchmark Nikkei 225 stock market in Japan concluded the day 2.6% higher, while the ASX 200 in Australia closed 0.8% higher.
Hong Kong’s Hang Seng fell by about 2.23%, while the Shanghai Composite Index in mainland China finished 0.1% down.
The Euro hit its lowest level since June, plunging 2.24% against the US dollar.
“The market is definitely moving in line with the Trump playbook; stocks and small caps, in particular, are higher on the idea that Trump will be good for U.S. companies,” said Seema Shah, chief global strategist for Principal Asset Management in London, according to Reuters report.
“Across emerging markets, you can see China and Europe are struggling with the idea that they could face higher tariffs, and U.S. bond yields higher with expectations for a higher fiscal deficit and inflation.”
Why Bitcoin Rise?
Surge in value of Bitcoin recorded on Wednesday, after Trumps victory announcement was attributed to the GOP’s presidential flag bearer’s election promise to make the US the “Bitcoin and cryptocurrency capital of the world.”
Bitcoin surged by $6,000 to a record high of $75,371.69.
Trump’s position on cryptocurrency stands in sharp contrast to the Biden administration’s, which has spearheaded a broad crackdown on cryptocurrency companies.
Trump had made threats to fire Gary Gensler, the chair of the Securities and Exchange Commission, a US agency that has filed lawsuits against a number of cryptocurrency companies, during the election campaign.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
