Bitcoin News – Bitcoin Hits Three-Month High as Trump’s Election Prospects Rise

Bitcoin News – Donald Trump’s Influence on Bitcoin and Dollar Dynamics: A Market Analysis

Bitcoin News – In early Asian trading on Monday, Bitcoin hit a three-month high, climbing to $69,400, marking an 18% increase since October 10. This surge is attributed to the improving prospects for former President Donald Trump in the upcoming U.S. presidential election on November 5. Analysts believe that a Trump administration would adopt a more favorable stance toward cryptocurrency regulation, boosting investor confidence.

Dollar Gains Ahead of Elections

As election polls show rising odds of Trump’s victory, the U.S. dollar is poised to extend its gains. Analysts suggest that Trump’s proposed tariff and tax policies may keep U.S. interest rates elevated while undermining the currencies of trade partners. The dollar index, which measures the currency against major rivals, was at 103.45, having recorded a 0.55% increase for the week despite a 0.3% dip on Friday as risk appetite grew across markets following China’s announcement of further stimulus measures.

Currency Market Movements

Last week’s currency fluctuations were heavily influenced by the European Central Bank’s dovish rate cut and strong U.S. economic data. The Japanese yen fell 0.1% to 149.32 per dollar, remaining just above the critical 150 level, while the euro traded flat at $1.0866 and sterling also remained unchanged around $1.3045. The Mexican peso faced a steep decline, falling 3%.

Market Focus: Corporate Earnings and Election Risks

With no major economic events scheduled for this week, market attention will turn to corporate earnings and the potential impact of U.S. election risks. Chris Weston, head of research at Pepperstone, emphasized that traders should consider whether now is the right time to place election trades with increased conviction. He noted, “The clearest way to express the Trump tariff risk was to be long dollars versus the euro, Swiss franc, and Mexican peso.”

Real Interest Rates Boosting the Dollar

Brad Bechtel, global head of FX at Jefferies, pointed out that rising real interest rates are supporting the dollar, particularly against the euro, Swiss franc, and Mexican peso. Bechtel stated, “We expect this trend to continue straight into the election and, if Trump wins, likely well after the election as well.”

Summary of Last Week’s Currency Performance

Last week saw varied performance across major currencies: the yen fell 0.3%, the euro declined 0.6%, while the dollar index rose 0.55%. Notably, the euro has dropped more than 3% in three weeks, falling below its 200-day moving average and reaching a 2.5-month low.

As the countdown to the election continues, market participants will closely monitor developments, particularly those related to cryptocurrency and dollar fluctuations, to inform their trading strategies.

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