FT: Bitcoin, dollar and Tesla jump as investors pile into ‘Trump trades’

Following Donald Trump's election win, Bitcoin surged over 10%, reaching a record high of $88,000 as investors bet on a crypto-friendly administration. With Republicans poised to control Congress, expectations of favorable legislation have boosted both crypto assets and market sentiment. Key stocks like Tesla, Coinbase, and Robinhood rallied, while the dollar hit a four-month peak. Optimism around Trump's policies has sparked a "Trump trade" euphoria across financial markets..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..By Will Schmitt in New York and Mari Novik, Rafe Uddin and Ian Smith in London.Markets expect US president-elect to take light-touch approach to regulation .___STEADY_PAYWALL___.Investors betting that Donald Trump's incoming administration will be a boon for the cryptocurrency industry drove the price of bitcoin to a new record on Monday, while the dollar advanced to a four-month high..The world's largest cryptocurrency, which has hit a series of record highs since the November 5 election, surged more than 10 per cent to surpass $88,000 for the first time, as the Republican party looked increasingly likely to take control of the House of Representatives, having already won a majority in the Senate..Bitcoin was just one of the assets that jumped in continued market elation following Trump's election victory last week. Tesla gained 9 per cent, cryptocurrency exchange Coinbase lept 19.8 per cent and broker Robinhood added 7.4 per cent. The total value of the global crypto market rose above $3tn for the first time in three years, according to crypto data provider CoinGecko..Trump's victory and the increasing likelihood of a Republican sweep presents "a very unique opportunity to advance transformational legislation" to "make America the world powerhouse for bitcoin and crypto", said David Bailey of BTC Inc, organiser of the Bitcoin Conference, where the president-elect spoke earlier this year..A Trump administration is expected to be supportive of the crypto industry and, with control of both chambers of Congress, would have greater power to enact favourable legislation. Trump and allies in Congress have expressed support for creating a national reserve of bitcoin..Read more: 🔒 Trump assembles business-heavy team for new administration."We are seeing absolute bullish sentiment," said Scott Acheychek, chief operating officer of REX Financial, which runs a suite of leveraged crypto exchange traded funds. Bitcoin has risen about 20 per cent since last Wednesday, the first trading session after the US presidential election..The dollar was up about 0.5 per cent against a basket of its peers on Monday, passing the level it hit the day after the election and taking it to its highest since July. The euro was down more than 0.6 per cent, having fallen during the session to as low as $1.063, its lowest level since April."What we are seeing is that people are keen to jump on the Trump trade sooner rather than later," said Emmanuel Cau, head of European equity strategy at Barclays..Both the S&P 500 and Nasdaq Composite ended the day little changed.."Markets are in euphoria territory right now," said Drew Pettit, director of US equity strategy with Citi. "The optimists are winning by thinking that Trump will be market- and economy-friendly. They are skipping the argument that bad things may happen."Economists have warned that Trump's proposed policies, including steep tariffs, tax cuts, interference with the Federal Reserve's monetary policy and mass deportations of millions of immigrants, could drive US government deficits higher and reignite inflation after months of decreasing pressure..The performance of crypto and other so-called Trump trades showed growing anticipation that the former president would take a light-touch approach to regulation during his second term, said Mabrouk Chetouane, head of global market strategy at Natixis Investment Managers.."Investors are willing to take risks, even with more protectionism in the pipeline," he said, referring to Trump's plans to sharply increase tariffs on imports to the US..The Republican candidate's decisive victory drove traders to price in his promises of tax cuts and tariffs, fuelling the dollar and sparking a sell-off in US government bonds..Trading in Treasuries, which have recovered much of their post-election losses, was closed for the Veterans Day public holiday in the US..The Financial Times reported last week that Robert Lighthizer, Trump's trade envoy during his first-term trade war with China, had been asked to take the job again. "Any clues on Trump's appointments may be market moving," said Deutsche Bank's Jim Reid..The Mexican peso, which had performed poorly in the run-up to the election and was highly volatile on election day, was down 1.2 per cent at 20.41 to the dollar..Read also:.🔒 The Economist: Trump's policies could send the US dollar soaring, rattling rest of the world🔒 Hedge funds shorting Tesla lose billions after Trump winDavid Shapiro analyses market shifts and the "Trump bump".© 2024 The Financial Times Ltd.

FT: Bitcoin, dollar and Tesla jump as investors pile into ‘Trump trades’

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