Good for Bitcoin and bad for Mexico – the ‘Trump trade’ makes a roaring comeback

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Last Updated on 19 October 2024 by CryptoTips.eu

A few days after we highlighted it as well, global media such as Reuters, the New York Times and Business Insider now also have to admit that the ‘Trump trade’ is back. This is part of the reason why Bitcoin touched $69,000 yesterday. The ATH record is within reach again.

The Trump trade refers to are investments in goods, companies or currencies (digital and fiat) that would normally do well under a Trump presidency. Although some media continue to claim that the election between Kamala Harris and Donald Trump is very close, investors are increasingly convinced that Donald Trump will likely become the new American president.

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Trump trade

Earlier this week we told you about a lawsuit filed by Kalshi and Interactive Brokers, two American companies that want to make online gambling legal, to allow betting on the Presidential elections. The judge ruled in their favor and although the American legislature will appeal, American citizens are allowed to bet online on Trump or Harris until the day of the election. This results in a large lead for Donald Trump, and a return of the ‘Trump trade’.

We already talked about that ‘Trump trade’ and its effect on the price of Bitcoin at the beginning of July and just after the first assassination attempt on him.

For Bitcoin, the “Trump trade” rests on two pieces of information: Trump is the more pro-crypto candidate of the two and his policies will make assets like Bitcoin more attractive to the rest of the world.

Peso

For other investments, the ‘Trump trade’ is negative. For example, it is expected that the Republican presidential candidate will impose heavy import duties, which could put a brake on Mexico’s rapidly growing economy. Trump is threatening to impose a 100% import tax on every car entering the United States from Mexico. The Mexican peso has therefore started to fall in recent weeks.

In any case, more and more investors are convinced that Trump will be good for the price of Bitcoin. We’ll know in three weeks who will make it.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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