The 2024 presidential election has come to an end, with Republican candidate Trump declaring victory, and the market quickly reacting strongly. Bitcoin, stocks, the US dollar, and major global market indices have all fluctuated, presenting a unique market trend driven by the "Trump trade". This BTX Insight will delve into these market reactions and reveal the underlying logic.
Global Market Volatility
After the election results were announced, US stock market futures quickly surged. S&P 500 futures expanded their gains to 2%, while Nasdaq futures rose over 1.7%. European markets opened slightly higher, with Germany's DAX30 index up 0.47%, the UK's FTSE 100 index up 0.79%, France's CAC40 index up 0.34%, and the European Stoxx 600 index up 1.2%.
At the same time, India's Nifty and Sensex indices also rose by 1%. The confirmation of the election results has brought confidence to these markets, and some market observers see it as a positive signal for global economic growth.
Bitcoin and Crypto Markets Reach New Highs
Bitcoin reached a new all-time high of $75,000 after the election, with intraday gains exceeding 8%. Driven by a stronger US dollar and market expectations of the "Trump trade", investment enthusiasm in the Bitcoin and crypto markets has surged, with other major cryptocurrencies such as Ethereum and Dogecoin also experiencing varying degrees of increase.
Market Analysis: The rise of Bitcoin during Trump's tenure is closely related to the market liberalization supported by the Republican Party. If Trump implements a relatively loose economic policy, the activity in the cryptocurrency market may further increase.
Reactions in the US Dollar and US Bond Markets
The US dollar index rose significantly as expected, expanding its gains to 1.64% and reaching a seven-month high of 105.12. The US Treasury market, on the other hand, experienced a sell-off, with the yields on 10-year and 30-year bonds rising by 10 basis points.
This capital flow indicates that investors may expect Trump's administration to further deregulate the market, increasing the demand for the US dollar and strengthening it against other currencies. In contrast, emerging market currencies, including the Mexican peso, have weakened against the US dollar.
Individual Stock Performance and Industry Reactions
The technology sector has shown the most significant reaction, with Tesla's US-listed shares rising over 11% pre-market, and Trump Media & Technology Group surging by 58%. Coinbase gained 3.2% after-hours, while MicroStrategy's stock price also climbed 4.37%. Analysts generally believe that Trump's victory will encourage companies related to crypto assets to increase their investments, and the optimistic market sentiment continues to support the rise of these stocks.
Crypto Market Outlook After the Election: Exclusive Insights from BTX
For crypto asset investors, the expectation of market liberalization has brought short-term positive news for Bitcoin and other cryptocurrencies. At the same time, analyses from UBS and Deutsche Bank indicate that although market volatility may intensify in the short term due to speculative sentiment, the market still needs to be cautious about potential corrections as policies become clearer.
In the coming months, BTX will continue to closely monitor the far-reaching impact of global policy changes on the crypto market, bringing more market insights to users.
The above content is based on public market information and is for reference only, not constituting any investment advice. The cryptocurrency market carries high risks, and investment requires caution.
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