In early Wednesday trading in Asia, Bitcoin surged close to a record high, reaching $73,563.63 late in U.S. trading and holding near $72,470 as of 0800 GMT. The leading cryptocurrency is approaching its March peak of $73,797.98 as investors monitor the tight U.S. presidential race. Analysts suggest that Bitcoin’s rise aligns with Republican candidate Donald Trump’s gains in the polls, as his recent “pro-crypto” stance is expected to drive demand for the digital currency.
Despite his previous criticisms of cryptocurrencies during his presidency, Trump has since embraced Bitcoin and launched his own crypto platform, positioning himself as a “pro-bitcoin president” if elected. Russ Mould of AJ Bell noted, “Bitcoin’s performance closely mirrors Trump’s standing in the polls, with a Republican win anticipated to drive greater demand for digital assets.”
In traditional safe-haven markets, gold also reached a record high, hitting $2,787.07 amid the election uncertainties, while oil prices saw a slight rebound after recent drops. Middle Eastern tensions eased somewhat as Israeli strikes on Iran avoided damaging critical energy infrastructure.
“Global oil prices appear at odds with ongoing economic improvements in the U.S. and stimulus efforts in China,” said Daniela Sabin Hathorn, a senior market analyst at Capital.com.
Asian markets closed mixed, with Tokyo’s Nikkei gaining 1.0% on the back of tech gains and a weaker yen, while Hong Kong’s Hang Seng led the decliners, dropping 1.6%. Markets across Shanghai, Sydney, Seoul, and Bangkok also saw declines as investors proceeded cautiously ahead of the U.S. election and the Federal Reserve’s upcoming rate decision.
Stephen Innes from SPI Asset Management commented, “With the U.S. election looming, Asian investors are taking a wait-and-see approach, with pre-election de-risking now in play.”
In Europe, markets opened lower, with London, Paris, and Frankfurt all declining. Investors remain focused on upcoming U.S. economic data, including third-quarter GDP growth, inflation reports, and labor market figures, which will offer more insight into the Fed’s direction on interest rates. U.S. Treasury yields on 10-year bonds climbed above 4.3% this week, suggesting more limited rate cuts may be expected at the November 7 Fed meeting.
In China, a key political meeting next week is raising hopes for a substantial 10 trillion yuan ($1.4 trillion) stimulus to support the struggling economy, which has faced challenges from a debt crisis in the property sector. However, this plan has received only a lukewarm reception as markets assess its potential impact.
**Key Market Figures as of 0810 GMT:**
– **Tokyo – Nikkei 225:** UP 1.0% at 39,277.39
– **Hong Kong – Hang Seng Index:** DOWN 1.6% at 20,380.64
– **Shanghai – Composite:** DOWN 0.6% at 3,266.24
– **London – FTSE 100:** DOWN 0.5% at 8,177.75
**Currency Exchange Rates:**
– **Euro/dollar:** UP to $1.0841 from $1.0816 on Tuesday
– **Pound/dollar:** UP to $1.3018 from $1.3010
– **Dollar/yen:** DOWN to 153.12 yen from 153.57 yen
– **Euro/pound:** UP to 83.28 pence from 83.13 pence
**Commodity Prices:**
– **Brent Crude:** UP 0.8% at $71.65 per barrel
– **West Texas Intermediate:** UP 0.9% at $67.79 per barrel
**U.S. Market Closing Figures:**
– **New York – Dow Jones:** DOWN 0.4% at 42,233.05