Trump’s victory in the presidential election, combined with a Republican Congress, is making for quick changes to the investment landscape. The dollar has rallied and will likely continue with volatility. The peso has already dropped quickly with Trump’s win. At the same time, many countries, including China, are trying to devalue their currencies to keep their exports competitive.
This rally will continue with many of Trump’s key policies. He wants large multinationals like Apple (NASDAQ:AAPL) to bring back overseas profits, which would drive demand for dollars. He thinks the Fed has been too dovish. In addition, actions by foreign central banks will also push the dollar up.
A Strong Dollar Is Good For Bitcoin
At first thought, a stronger dollar is negative for Bitcoin (COIN, OTCQX:GBTC); in reality, it is not. Bitcoin is a world currency, and people are turning to it when their governments devalue their home currencies. The largest driver of this is China. If the yuan devalues at a faster and faster rate, the Chinese will increase their use of Bitcoin. The Chinese are