Bitcoin has broken through $82,000 on so-called ‘Trump trades’ – with investors betting that a second Donald Trump administration will be more favourable towards the cryptocurrency.
Bitcoin, the world’s biggest cryptocurrency, touched $82,413 this morning, and is now trading at $82,105.
AJ Bell investment director Russ Mould said:
Bitcoin always seemed a likely beneficiary of a Trump victory and so it is proving as the cryptocurrency hits a new record high.
It’s not just the incoming occupant of the White House which has helped bitcoin, there have also been down-ticket victories for candidates who have a positive stance on the asset class. Notably, one of its main critics, Senate banking chair and Democrat Sherrod Brown, fell to his Republican opponent and a crypto fan Bernie Moreno.
The dollar has also gained, rising to a four-month high, as Trump is expected to usher in more inflationary policies, which would limit the Federal Reserve’s scope for further interest rate cuts.
The dollar is up by 0.4% against a basket of other major currencies. The euro lost nearly 0.6% to $1.0657, its lowest level since June
