Trump Crypto Surge Pushes Bitcoin Beyond $90,000 Amid Market Shake-Up

In a historic rally, Bitcoin has broken through the $90,000 mark following Donald Trump’s recent election victory, a monumental leap driven by the former president’s crypto-friendly stance. The cryptocurrency, which stood at $36,000 a year ago, has surged on Trump’s campaign promises to make the U.S. the “crypto capital of the planet” and accumulate a national Bitcoin reserve. As expectations build around regulatory relaxations, Bitcoin is now eyeing the $100,000 milestone, potentially reaching it before Trump takes office.

Yesterday saw Bitcoin’s price rise from $88,000 to over $93,000. Meanwhile, the broader markets reacted cautiously to the latest U.S. inflation report, which held steady at 2.6%. New York indices made small gains in early trading, while London’s FTSE 100 ended with a slight increase of 0.06%, closing at 8,030.33. At one point, it dipped below 8,000 for the first time since August, and the FTSE 250 dropped 0.34%, ending the day at 20,359.21.

Shifts in Traditional Markets Amid Bitcoin Buzz

While Bitcoin captured the financial world’s attention, traditional markets showed mixed reactions. New York’s major indices saw modest growth, whereas London’s markets struggled with more subdued gains. Dowlais, a key player in the automotive industry, led the FTSE 250 gainers board after reporting stable trading performance. Despite a decline in its electric powertrain division, the company’s shares jumped 6.7% to 51.3p, as underlying revenue for the year fell by 6.1% to £4.2 billion. Dowlais, spun off from the GKN empire in 2023, has faced challenges in its primary market but received positive investor support, particularly outside China where joint venture revenue stayed flat.

Smiths Group, a FTSE 100 company, was among the day’s biggest winners, climbing 10.5% to 1681p. The medical and airport scanners firm raised its full-year revenue growth outlook to between 5% and 7% after posting 16% organic revenue growth for the first quarter. On the other hand, private equity firm Intermediate Capital took a hit, falling 7.2% to 2078p as its half-year pre-tax profits dropped from £241.9 million to £198.4 million, despite a rise in net asset value. Similarly, Experian saw a 2.5% decline as interest rate movements contributed to a 5.9% drop in first-half pre-tax profit.

Automotive and Energy Sector Developments

In the automotive sector, Dowlais’ Driveline division outperformed other global light vehicle production markets, with the exception of China, providing some optimism to investors after a challenging period since its spin-off from Melrose Industries in 2023.

Scottish energy giant SSE saw a modest dip of 0.6% after announcing the upcoming retirement of CEO Alistair Phillips-Davies, who has served at the company’s helm for 11 years. Nevertheless, SSE reported a 38% rise in half-year pre-tax profit and boosted its interim dividend by 6%, signaling continued strong performance despite executive turnover.

Bitcoin’s Future and Market Uncertainty

Bitcoin’s unprecedented rally has fueled hope for continued growth in the cryptocurrency market under a Trump administration that has vowed to embrace digital assets. Traditional markets, however, remain cautious as they navigate the latest inflation figures and other economic challenges. While Bitcoin’s record-breaking surge has brought renewed enthusiasm to the digital asset sector, the broader financial landscape continues to grapple with sector-specific issues and the potential effects of economic policies under new leadership.

With Trump’s support energizing the cryptocurrency sector, the question remains whether this momentum can sustain Bitcoin’s upward trajectory. As the U.S. economy and global markets adapt to changing conditions, both traditional and digital assets will be closely watched to see if this surge heralds a new era for Bitcoin and crypto investments.