Bitcoin has hit a new high as Donald Trump declared victory in the US presidential election.
The digital currency soared to $75,397 this morning, surpassing its high of around $73,000 set in March.
It comes as Trump promised during the election campaign to make the United States the “crypto capital of the planet”, despite doubts during his first term.
Trump previously described cryptocurrencies as a scam, but has now radically changed his position and has a significant stake in the digital currency.
In September, the Republican candidate launched his family’s own cryptocurrency company, World Liberty Financial.
But it had a faltering sales launch earlier this month, with only a small proportion of the tokens it put on the market finding a buyer.
Donald Trump gestures at the Bitcoin 2024 event in Nashville on July 27
Donald Trump smiles at an election night viewing party at the Palm Beach Convention Center
Donald Trump makes campaign stop at Pubkey Bar and Media House on September 18
Before the election, many cryptocurrency advocates argued that a victory for the former president would be good for the currency.
Some analysts predicted that a Trump victory could see Bitcoin rise to $80,000 or $90,000.
deVere’s Nigel Green told The Guardian before the vote: “A Trump victory could be the catalyst that pushes the world’s first and largest cryptocurrency into uncharted territory.”
“His return to office would likely have a renewed emphasis on deregulation, tax incentives, and economic policies favorable to alternative investments, such as Bitcoin.”
In the second half of his presidency, Biden clamped down on cryptocurrency companies in an effort to curb security breaches, raising questions about the future of the currency in the United States.
It comes as global stock markets also rose as Fox News projected the Republican candidate had won the presidency, defeating Kamala Harris.
The London stock market rose 0.9 percent, Paris rose 1.0 percent and Frankfurt advanced 0.8 percent as they rose in early trading this morning.
Trump was joined on stage by family members, including his daughter Ivanka and son-in-law Jared Kushner, who had been absent from the campaign, aides and political supporters.
Republican presidential candidate former President Donald Trump makes a campaign stop at Pubkey Bar and Media House on September 18.
Analysts generally assume that Trump’s plans to restrict immigration, tax cuts and broad tariffs, if enacted, would put more upward pressure on inflation and bond yields than Democrat Harris’s policies.
This morning, U.S. Treasury yields soared to four-month highs and the dollar soared – putting it on track for its best daily gain in more than two years – while U.S. stock futures rose nearly 2 percent. hundred.
In early European trading, concerns that higher tariffs under Trump could deal a fresh blow to the region’s economy sent the euro down 1.7 percent to $1.074.
While euro zone government bond yields fell sharply and German two-year bond yields fell 10 basis points to 2.19 percent.
Meanwhile, money markets priced in the European Central Bank’s lower rates.
“For European businesses, Trump’s return to the White House would mean considerable trade and geopolitical uncertainty, with negative implications for growth on the continent,” said Berenberg chief economist Holger Schmieding.
Supporters arrive at an election night viewing party for Republican presidential candidate former President Donald Trump.
Supporters of former US president and Republican presidential candidate Donald Trump applaud near his Mar-a-Lago resort in Palm Beach.
However, euro zone stock futures rose sharply, following their US peers.
Japan’s Nikkei rose more than 2.5 percent as the yen fell, while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9 percent.
While markets were still confident that the Federal Reserve will cut interest rates by 25 basis points on Thursday, futures for next year fell into the red with December falling 9 basis points.
Yields on the 10-year Treasury jumped to a four-month high of around 4.47 percent, from 4.279 percent, surpassing last week’s high of 4.388 percent. Two-year yields rose to 4.31 percent, from 4.189 percent late in New York.
“If we look at the long end of the curve, that reflects the fact that both candidates are not exactly fiscal conservatives, they are both willing to use the fiscal printing press,” said Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions.