Why Donald Trump’s election win fuelled a stock market surge
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 13 November 2024, the week after Trump’s win, Bitcoin broke through the US$90 000 (R1.63 million) price threshold for the first time, and the value of the global crypto market topped US$3 trillion (R54.5 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.
These and others can be defined as ‘Trump trades’—financial market trends influenced by the president-elect’s win. These trends emerge as …
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