Bitcoin surged $30 to test earlier highs following the announcement that Donald Trump had become president of the United States early this morning.
Also read: Trump Vs Clinton: Bitcoin Illiteracy in 2016 Presidential Election
Trump Pumped, Bitcoin Bumped, Markets Dumped
In what is being regarded as one of the most unlikely political victories, Trump’s win is piling pressure on the dollar and has sent financial markets tumbling – aiding Bitcoin in the process.
Reactions are already coming in the form of USD shunning, with Quartz quoting professional poker player Shannon Shorr:
Want bitcoin. Have USD.
— Shannon Shorr (@ShannonShorr) November 9, 2016
While the Clinton campaign chairman John Podesta buoyantly reminded his camp that “they are still counting votes,” Trump has already secured more than the 270 electoral college seats needed to win.
The election result not only means short-term financial upset. The widely-held belief the Federal Reserve would hike interest rates in December has now come into question.
“It raises the odds that the Fed will not move in December,” chief Moody’s analyst Mark Zandi told Reuters.
Chicago Federal Reserve president Charles Evans responded that there was a need for “independence from short term political pressure.”
Trump however in his acceptance speech struck a rather different tone.
“We have a great economic plan, we will double our growth and have the strongest economy anywhere in the world,” he said.
Elsewhere, analysts responded warily to the reality that Trump’s almost unbelievable election pledges could come true in some form.
“His tax cuts could open up a huge increase in the budget deficit and his trade sanctions could interrupt world trade. This could put us in a recession,” Retuers quotes Donald Selkin, chief market strategist at National Securities, New York.
More US Surprises
Other US news meanwhile focuses on an entirely different political matter which is buoying bitcoin.
While the country focuses on Trump, not just California but also Maine, Massachusetts, Florida and North Dakota among others moved to legalize cannabis, either for medical or recreational use.
California’s vote was widely forecast to be successful, and the move brings legitimacy to a multi-billion dollar industry which previously could not operate in the open.
Last month, Bitcoin.com reported on the first initative to bring POS tools fully in-line with regulation to California and Oregon dispensaries, with further states to follow. Bitcoin would be the transaction medium of choice.
“If we’re successful, it’s the beginning of the end of the war on marijuana,” lieutenant governor of California Gavin Newsom commented to the New York Times last week prior to the vote.
What do you think about the election results and their importance for Bitcoin? Let us know in the comments section below.
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