Following Donald Trump’s victory in the US presidential election, Bitcoin was one of the assets that surged in value. This was widely felt to be a response to Trump’s promise to establish a strategic Bitcoin reserve – essentially holding a large stock of the cryptocurrency as a security. On November 13, the week after Trump’s win, Bitcoin broke through the US$90,000 (£71,340) price threshold for the first time, and the value of the global crypto market topped US$3 trillion for the first time in three years.
US stock markets the Dow, S&P 500 and Nasdaq also hit record levels, with investors expecting to price in Trump’s promises of tax cuts and tariffs, fuelling the dollar and sparking a sell-off in US government bonds. Promises of corporate tax cuts and deregulation tend to encourage financial innovation, making markets more active.
