Bitcoin was nearing $73,000 in Asian trading on Wednesday, approaching a record high as investors closely monitored the US presidential election. The leading digital currency was trading around $72,470 at 0800 GMT, after reaching $73,563.63 in late US trading, just shy of its all-time peak of $73,797.98 in March.
The surge in Bitcoin’s price is seen as a bet on a Republican victory, with Donald Trump emerging as the pro-crypto candidate. Russ Mould, an analyst at AJ Bell, noted that Bitcoin’s price closely follows Trump’s standing in the polls, as a Republican victory would likely increase demand for the digital currency. During his presidency, Trump referred to cryptocurrencies as a scam but has since changed his stance, presenting himself as a “pro-bitcoin president” and even launching his own crypto platform.
Amid the uncertainty surrounding the tight US election, safe-haven gold also reached a record high of $2,787.07 on Wednesday. Oil prices rebounded slightly after falling sharply earlier in the week, as fears of an escalation in the Middle East eased following Israel’s strikes on Iran, which avoided the country’s energy infrastructure.
Asian stocks fell following a mixed lead from Wall Street, with markets in a risk-off, wait-and-see mode ahead of the US election and the Federal Reserve’s rate decision next week. Tokyo was virtually the sole advancer, closing one percent higher as the Nikkei continued its run-up on the yen’s weakness and tech gains. Manila was the only other market in the green. Hong Kong led the decliners, falling 1.6 percent, while Shanghai, Sydney, Seoul, Singapore, Taipei, Kuala Lumpur, and Bangkok also retreated. In Europe, London, Paris, and Frankfurt were all lower in opening trade.
Stephen Innes, an analyst at SPI Asset Management, noted that Asian markets were mostly down on Wednesday, with investors on edge and wary of making big moves in local markets as the US presidential election looms large. Even China’s rumored 10 trillion yuan ($1.4 trillion) stimulus plan received a lukewarm reception as investors weighed its potential impact on the broader economy.
Investors are hoping that a key political meeting in Beijing next week will roll out a major stimulus plan for the Chinese economy, which has struggled to recover from the pandemic, with growth dragged down by a debt crisis in the property sector. Markets are also awaiting a raft of key US economic data for more clues about the health of the world’s largest economy and the direction of the Fed’s interest rate policy. Third-quarter GDP growth estimates will be released later Wednesday, with inflation data and the closely watched monthly labor market report out Thursday and Friday, respectively.
Data released Tuesday showed US job openings fell to the lowest level since 2021 and below market expectations, indicating the labor market could be cooling. Yields on 10-year US Treasuries have edged up to above 4.3 percent this week, the highest since early July, suggesting that some market participants are increasingly counting on more limited rate cuts from the Fed at its November 7 meeting.
Key figures around 0810 GMT:
Tokyo – Nikkei 225: UP 1.0 percent at 39,277.39 (close)
Hong Kong – Hang Seng Index: DOWN 1.6 percent at 20,380.64 (close)
Shanghai – Composite: DOWN 0.6 percent at 3,266.24 (close)
London – FTSE 100: DOWN 0.5 percent at 8,177.75
Euro/dollar: UP at $1.0841 from $1.0816 on Tuesday
Pound/dollar: UP at $1.3018 from $1.3010
Dollar/yen: DOWN at 153.12 yen from 153.57 yen
Euro/pound: UP at 83.28 pence from 83.13 pence
Brent North Sea Crude: UP 0.8 percent at $71.65 per barrel
West Texas Intermediate: UP 0.9 percent at $67.79 per barrel
New York – Dow: DOWN 0.4 percent at 42,233.05 (close)
