Dollar Surges, Bitcoin Reaches Record High, and Stocks Swing as Traders Wager on Trump’s Victory

The dollar surged and bitcoin hit a new record high on Wednesday, November 6, as traders grew more confident in a potential Donald Trump victory in the U.S. presidential race.

Trump’s wins in key swing states fueled expectations of renewed tax cuts, tariffs, and inflationary policies—all of which are seen as favorable for the U.S. dollar.

Despite pre-election polls suggesting a tight race, Donald Trump seemed to be outpacing his Democratic opponent, Vice President Kamala Harris, as votes were tallied.

His victories in crucial states like Georgia and North Carolina sparked a market rally, fueled by the so-called “Trump Trade.”

The dollar surged 1.5%, reaching 154.33 yen, its highest level since July, while also rising more than 1% against the euro and over 3% against the Mexican peso.

Bitcoin, meanwhile, skyrocketed nearly $6,000, hitting a record high of $75,330.88, surpassing its previous peak of $73,797.98 in March.

Trump’s campaign promises, including his goal to make the U.S. the “bitcoin and cryptocurrency capital of the world” and his plan to appoint tech billionaire Elon Musk to oversee an audit of government waste, have fueled investor optimism in the digital currency market.

Analysts observed that bitcoin’s price movements have closely tracked Trump’s polling numbers, with a Republican victory potentially driving even greater demand for digital assets.

A clean Republican sweep of Congress and the White House is expected to boost both the dollar and Treasury yields, driven largely by Trump’s proposed tax cuts and tariff policies. However, these measures could also stoke inflation, potentially complicating efforts by Federal Reserve Chair Jerome Powell, who has been focused on controlling rising prices.

Ahead of potential election-driven volatility, global markets showed mixed reactions. Tokyo’s Nikkei surged more than 3%, with exporters benefiting from a weaker yen, while other Asian markets, including Shanghai, Sydney, and Singapore, also posted gains.

In contrast, Hong Kong’s Hang Seng Index fell 2%, amid concerns about U.S.-China trade relations under a possible Trump administration.

China is closely monitoring the election, as a Trump victory could escalate trade tensions, particularly if tariffs are re-imposed, which could negatively impact its economy.

The election also coincides with an important meeting of Chinese leaders, who are planning economic measures to bolster growth, especially in light of the ongoing debt crisis in the country’s property sector.