Bitcoin skyrocketed after Donald Trump’s victory in the presidential elections USA. This cryptocurrency was followed by others in the opening of Wall Street this Wednesday. The US dollar also showed strengthening in international markets.
Since this morning, when the first results of the elections have been known, The market has reacted positively to Trump’s victoryand the futures on the main Wall Street indicators soar.
At 11:30 a.m., the Dow Jones advances nearly 3%; the S&P 500, 2.27%; and the Nasdaq, 1.72% emboldened by Trump’s promises to cut corporate taxes.
For its part, The dollar this morning registered its largest intraday increase since March 2020 by rising more than 2% against the euro.
At this time, the greenback is advancing less strongly, and the euro is trading at $1.075.
Ebury analysts explain that the dollar is trading higher against almost all currencies in the worldand they are registered emerging market currency sell-offs“as investors price in rising U.S. tariffs, elevated geopolitical risks and increased global uncertainty under Trump.”
Another of the assets that on this day is welcoming the Republican’s victory in a very positive way is bitcoin, the most used and well-known cryptocurrency on the market, which has skyrocketed more than 8% before the European opening, and has set new all-time highs at $75,371.65.
At 11:30 a.m., the cryptocurrency deflated slightly. It revalued 6.92%, up to $73,938.1.
On the contrary, the price of the ten-year US bond, the reference, falls sharply, while the yield advances to around 4.41 percent.
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And this, in a context in which the measures proposed by Trump could increase price pressures and worsen debt outlookaccording to experts.
In this sense, IG analyst Sergio Ávila warned that higher tariffs with Trump would threaten to stop progress in the fight against inflationsomething that will impact the monetary policy of the US Federal Reserve (Fed) and in growth.
In Europe, the main stock exchanges, with the exception of Madrid, are driven by the euphoria that American futures advance, although they register moderate gains.
Meanwhile, the price of Brent crude oil, the reference price in the Old Continent, which has dropped more than 2% this morning, is down 1.68% at this time, to $74.26.
Experts assure that the price of crude oil is falling due to the rise in the dollar, and due to the possibility that the Republican will increase the production of fossil energy such as oil and gas, which could cause its price to fall.
Janus Henderson experts highlight the strength that stock markets outside the US are showing today, as European and Japanese equities perform “well”, while Chinese stock markets have registered smaller losses than expected, “despite Trump’s threats to global trade“.
Finally, abrdn’s deputy chief economist, Luke Bartholomew, has highlighted that after the results of the US elections are known “quite soon”, The implied volatility expected in the market for the coming days has plummeted“.
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