Stocks Slip, Bitcoin Nears $90,000 As "Trump Trade" Shakes Markets

Global stocks experienced a downturn on Tuesday amid investor concerns about US President-elect Donald Trump's policy proposals, while Bitcoin approached a record high of $90,000 as traders invested in assets they believe could benefit from the incoming administration, Amanda Cooper reported for Reuters.

Bitcoin was trading just below $90,000, having surged 30% in the week since the election.

Investors have been pouring capital into assets expected to gain from Trump’s second term, in which he has pledged to raise tariffs on imports from key trading partners and implement tax cuts and looser regulations.

Bitcoin, the world’s largest cryptocurrency, was trading just below $90,000, having surged 30% in the week since the election.

Meanwhile, the S&P 500 and small-cap stocks have reached new all-time highs. In contrast, the euro and Chinese yuan have come under pressure, as investors weigh the impact of potential tariff hikes and the risk of continued struggles in China’s economy, despite Beijing’s extensive stimulus efforts.

With the race for the White House appearing close based on pre-election polling, many investors are now unwinding positions they took on a possible Democratic victory or a divided government, according to Samy Chaar, an economist at Lombard Odier in Switzerland, as well as Ankur Banerjee and Jiaxing Li, who also reported for Reuters.