Trump is getting closer to winning, as Bitcoin hits a record high of $75,000.

Trump is getting closer to winning, as Bitcoin hits a record high of $75,000.

As traders increased their bets on further tax cuts, tariffs, and rising inflation, the dollar jumped and bitcoin reached a record high on Wednesday. They were betting on Donald Trump winning because he had picked up important swing states that were necessary to win the White House.

According to surveys, the contest was close, but when the votes came in, the Republican seemed to be doing better than his Democratic opponent, Vice President Kamala Harris.

In safe states, both candidates achieved the anticipated victories, but the so-called Trump Trade gained momentum when it became apparent that the business magnate was headed for a second term.

The US networks proclaimed the tycoon the victor in Pennsylvania, a crucial battleground, with Fox News predicting that he would win. He also won Georgia and North Carolina, with other states still up in the air.

The possibility of broad tax cuts, increased tariffs, and deregulation—all of which were perceived as strengthening the dollar—was bolstered by the news that the former president’s party had taken control of the Senate.

The dollar was up more than one percent against the euro and more than three percent against the Mexican peso, and it surged 1.5 percent to 154.33 yen, its best level since July.

Bitcoin surged almost $6,000 to a record high of $75,371.69, surpassing its previous high of $73,797.98 in March.

Trump has vowed to put tech entrepreneur Elon Musk in charge of a comprehensive audit of government waste and to turn the US into the “bitcoin and cryptocurrency capital of the world.”

Ahead of Tuesday’s US election, Russ Mould, an analyst at AJ Bell, stated that the price of bitcoin has closely tracked Trump’s standing in the polls and on betting markets.

He went on to say that investors are “possibly adopting the perception that a Republican victory would result in a surge in demand for the digital currency.”

According to analysts, Trump and Republicans’ proposals to lower taxes and impose import tariffs would certainly cause the dollar and Treasury yields to rise if they won a landslide victory in Congress and the White House.

A Republican-controlled Senate and House “could bring sweeping shifts in tax or spending policy.” However, Stephen Innes of SPI Asset Management stated that legislative deadlock might be the ultimate volatility suppressor.

According to economist and Esho Capital founder Peter Esho, “the market is pricing in a higher growth and higher inflation outlook for the time being, but the markets are rushing to figure out what happens next.”

With Trump’s proposals deemed inflationary, such a result might give Federal Reserve Chairman Jerome Powell a headache as he continues his fight to control inflation.

The central bank is expected to drop interest rates by 25 basis points after lowering them by 50 points in September, and the election comes as it gets ready to make its most recent policy decision on Thursday.

At one point, the dollar’s rise against the yen helped Tokyo equities rise more than 3% due to advances in exporters; Sydney, Singapore, Taipei, Mumbai, and Bangkok markets also saw increases.

But Shanghai, Seoul, Wellington, Manila, and Jakarta all suffered losses.

Because of concerns about how a Trump presidency might affect China’s economy and ties between Beijing and Washington, Hong Kong was also significantly down, at one point plunging nearly three percent.

Wall Street had provided traders with a solid lead, as all three major indexes increased by more than one percent.

China is particularly interested in the election’s outcome, even though it is being widely watched worldwide, as Trump promised to intensify a trade war with the economic giant by placing high taxes on Chinese goods.

The vote takes place during a crucial meeting of Chinese officials to finalise a set of stimulus plans intended to boost economy and aid the massive real estate industry, which is enmeshed in a crippling debt problem.

Important numbers at 0710 GMT

Dollar/yen: up from Tuesday’s 151.60 yen to 154.21 yen

Euro/dollar: down from $1.0930 to $1.0711.

Pound/dollar: down from $1.3035 to $1.2853

Euro/pound: down from 83.82 pence to 83.32

Nikkei 225 in Tokyo: UP 2.6% at 39,480.67 (close)

The Hang Seng Index for Hong Kong is down 2.6% at 20,467.69.

Shanghai Composite: closed at 3,383.81, down 0.1 percent.

West Texas Intermediate: $70.59 per barrel, down 1.9%

At $74.03 a barrel, Brent North Sea Crude is down 2.0 percent.

The New York Dow closed at 42,221.88, up 1.0 percent.

London’s FTSE 100 closed at 8,172.39, down 0.1 percent.