US elections: Bitcoin reaches peak value – Tesla shares also rise

The price of the cryptocurrency Bitcoin reached a new high of more than $75,000 on Wednesday. Bitcoin rose to a value of $75,005.06 in the morning.

This exceeded the previous high of $73,797.98, which was reached in March. This was driven by the prospect of regulatory easing in the event of Donald Trump’s victory in the US presidential election held on Tuesday. The Republican presidential candidate announced that he wanted to “make America the crypto and Bitcoin capital of the world.” He also said he would be “the pro-innovation, pro-Bitcoin president that America needs.”

Trump is distancing himself from the government of US President Joe Biden, which supports the regulation of cryptocurrencies. These enable digital payment transactions without being controlled by banks.

SMI reacts clearly positively

The feared impasse is not apparent. In fact, everything suggests that the Republican Donald Trump will return to the White House with a clear majority. There are indications that the Republicans will also gain a majority in both chambers, which would mean that Trump could govern without major resistance. The resulting lack of uncertainty provides visible relief on the markets. In the past few days, fears of an unclear outcome had weighed on the mood.

“The presumably clear election victory of the Republicans means that the outcome of the election should not be in doubt,” comments Karsten Junius, chief economist at Bank J. Safra Sarasin. At the same time, the approval of the Republicans and the associated hope for tax cuts is likely to lead to rising yields on US bonds and dwindling hopes of massive cuts in key interest rates, he adds. “The election victory of Donald Trump as the future and renewed President of the USA is already a foregone conclusion on the financial markets,” says trader Andreas Lipkow. “The drops have been sucked and the year-end rally has officially begun.”

The Swiss leading index SMI rose by 2.1 percent to 12,115 points by 10 a.m. Share prices are also clearly rising on other stock exchanges in Europe, such as Frankfurt, Great Britain and France.

In this country, UBS (+4.3%), Julius Baer (+4.2%) and ABB (+4.1%) lead the field of winners with a good lead. With regard to the banks, the market is saying that the prospect of rising interest rates should provide some support.

Meanwhile, Logitech is clearly negative with a discount of 3.3 percent. Kühne+Nagel (-2.2%) also recorded major price losses in early trading.

Tesla shares are rising sharply

Tesla’s main shareholder, Elon Musk, strongly supported Trump during the US election campaign. The expected election result is now also reflected in the Tesla price on the stock market. The looming victory of Donald Trump in the US presidential election is providing strong tailwind for the shares of the electric car manufacturer Tesla. They rose by more than 12 percent in premarket US trading to just under $283. In the main business, this would be the highest price since mid-2023. And: Tesla would thus come closer to a market capitalization of one trillion dollars.

According to Trump’s wishes, Musk should clean up the bureaucracy in the government apparatus in a future government and fire public servants in droves. In the future, Musk could be “responsible for supervising himself – potentially giving him the power to do anything he wants,” tech analyst Rob Enderle warned. SpaceX and Tesla operate in highly regulated industries and have regularly clashed with the US authorities.

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