A crypto-fuelled victory?

The upcoming US presidential election is shaping up to be a crypto-charged showdown. October witnessed a staggering $3.4 billion flood into the crypto market, buoyed by the prospect of a Trump victory. As the political climate heats up, so does the crypto market, with Bitcoin and other digital currencies riding the wave of investor enthusiasm.

In August, Trump ignited a firestorm on X, declaring to his 90 million followers that he has “a plan to make the United States the crypto capital of the planet.” Is this just campaign talk? No. Trump’s digitally dialed-in strategists are tapping into a seismic shift -- cryptocurrency awareness and ownership in the US are reaching unprecedented heights, with an astonishing 40 per cent of American adults now owning crypto. That’s a staggering 93 million Americans ready to make their voices heard at the polls and in the markets!

Data from the Polymarket platform reveals a powerful trend: the pro-crypto Trump is now leading in six key battleground states, with a staggering 84 per cent chance of securing a Republican-controlled Senate. This prospect of a crypto-friendly administration is sending ripples through the digital currency market, driving up cryptocurrency values.

Meanwhile, defence and fossil fuel stocks listed on the New York Stock Exchange (NYSE) are surging. Trump’s pro-defence and pro-fossil fuel stance is a clear catalyst for these sectors, potentially reshaping the American economic landscape.

Healthcare and Big Pharma stocks are caught in a storm of volatility. This rollercoaster ride, marked by dramatic price swings and shifting valuations, signals the market’s anticipation of a Trump comeback -- and the policy upheaval it could bring. With Trump’s potential return looming, investors are bracing for fresh waves of uncertainty and risk, setting these sectors on edge.

Trump has dropped another bombshell proposal: a whopping 60 per cent tariff on Chinese imports. With the US relying on more than $500 billion worth of low-cost Chinese goods, such a tariff would trigger inflation. Enter the new ‘gold rush’. In October, gold prices skyrocketed to a historic peak of $2,758 per troy ounce, as investors scrambled to shield their wealth from the looming inflation tsunami.

Bank stocks are soaring. Yes, Trump stands for financial deregulation, and soaring bank stocks are signaling a Trump victory as banks stand to benefit from fewer restrictions on lending, investing and financial operations.

Wall Street, it seems, prefers Trump to win the US presidential election and thinks it is likely. It is betting big on a Trump victory, and is already positioning for a new era of pro-business policies. If Wall Street’s pulse is any indicator, America could be on the brink of another Trump-led, crypto-fuelled victory.