Bitcoin Soars Amid U.S. Election Fever, Dollar Gains Momentum
Bitcoin reached a three-month high as the U.S. presidential election approaches, coinciding with a strengthening dollar. Analysts attribute dollar gains to potential Trump policies favoring higher interest rates. With few economic events on the horizon, focus shifts to earnings and election risks.
In a notable development, bitcoin climbed to a three-month high on Monday as traders brace for the upcoming U.S. presidential election. Concurrently, the dollar showed signs of further strengthening, supported by election polls hinting at a favorable outcome for former President Donald Trump.
Currency movements last week were influenced by the European Central Bank's dovish rate cut and robust U.S. data. The yen weakened slightly, while the dollar index recorded a weekly gain despite Friday's minor slip. Bitcoin's gain of 18% since October 10 is linked to Trump's perceived leniency toward cryptocurrency regulation.
Market observers, with key focus on corporate earnings and election risks, face critical decisions in the lead-up to the election. Rising U.S. real interest rates, particularly compared to Europe, continue to bolster the dollar's strength and create currency shifts globally.
(With inputs from agencies.)
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