– Bitcoin reached a three-month high, climbing 18% since October 10, driven by increasing odds of Donald Trump’s return to the White House and his perceived softer stance on cryptocurrency regulations.
– The US dollar strengthened as Trump’s proposed tariff and tax policies are expected to keep interest rates high, putting pressure on the currencies of US trading partners.
– Last week, the yen fell 0.3%, the euro 0.6%, while the dollar index rose 0.55%. The Mexican peso saw a significant drop of 3%, and the euro has been down more than 3% over the last three weeks.
Bitcoin surged to a three-month high in early Asian trading, while the US dollar appeared poised to continue its upward trend as markets braced for the upcoming US presidential election in two weeks.
The cryptocurrency gained momentum, fueled by improving odds for Donald Trump’s potential return to the White House. His administration is perceived to be more lenient on cryptocurrency regulations, lifting Bitcoin by 0.8% to $69,400 (BTC=), marking an 18% rise since October 10, according to Reuters.
Trump’s increasing chances of winning the November 5 election are also bolstering the dollar. His proposed policies on tariffs and taxes are expected to sustain higher U.S. interest rates, while weakening the currencies of key trading partners, as highlighted by election polls.
Currency movements last week were influenced by a dovish rate cut from the European Central Bank and strong U.S. economic data, delaying expectations for U.S. rate cuts—particularly if Trump secures the presidency, according to CNBC.
In recent trading, the yen dipped 0.3%, the euro dropped 0.6%, and sterling remained flat, while the dollar index rose by 0.55%. The Mexican peso experienced a sharper decline, falling by 3%.
The euro, down more than 3% in the past three weeks, has slipped below its 200-day moving average and is now hovering near its lowest point in two and a half months.
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