Market Outlook: Trump’s Win Sparks Crypto Frenzy and Dollar Surge
As the dust settles on the U.S. election, investors are quickly placing their bets on the winners and losers of a Trump administration. One clear victor is bitcoin, often referred to as “digital gold,” which has skyrocketed over 25% since Trump’s win and is on the cusp of $90,000.
Crypto-Friendly Environment Ahead?
At the heart of this surge is the perception that Trump will usher in a more crypto-friendly environment, free from the scrutiny of the U.S. Securities and Exchange Commission under Chair Gary Gensler, whom Trump has vowed to replace. During his campaign, Trump promised to make the United States the “crypto capital of the planet” and even proposed accumulating a national stockpile of bitcoin.
Miners Reap the Rewards
As a result, crypto miners like Riot Platforms, MARA Holdings, and CleanSpark have seen their shares soar, with some jumping nearly 30% in after-hours trade. Tesla, another winner in the post-election rally, has seen its shares surge almost 40% in just a week.
Economic Data Takes a Backseat
While economic data may take a backseat for now, the Federal Reserve’s Senior Loan Officer Opinion Survey on Bank Lending Practices is worth keeping an eye on. The survey provides valuable insights into credit conditions, which could influence interest rate expectations. Any signs of strong credit conditions may suggest that U.S. interest rates may not need to fall as quickly as anticipated, especially if Trump’s policies fuel inflation.
Dollar Strengthens, Euro Weakens
The dollar is riding high, nearing four-month peaks against other major currencies, while the euro languishes at seven-month lows around $1.0617. Capital Economics predicts the euro will fall to parity against the greenback by the end of 2025, citing potential tariffs and ECB easing.
Key Developments to Watch
Later today, investors will be watching closely for key developments, including:
- German ZEW index
- Federal Reserve’s Senior Loan Officer Opinion Survey on Bank Lending Practices
- Fed speakers Christopher Waller, Thomas Barkin, Neel Kashkari, and Patrick Harker
These events will provide further direction for U.S. markets and shed light on the impact of Trump’s win on the economy.
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