Cryptocurrency Surges Amid Election Jitters

Bitcoin reached a three-month high as the U.S. dollar gained strength ahead of the presidential election. The currency's rally is supported by President Trump's favorable stance on cryptocurrency. The anticipation of Trump's victory and his economic policies are influencing global currency movements, particularly against the euro, yen, and peso.

Bitcoin surged to a three-month high on Monday as it benefited from an election-driven buoyancy in the U.S. dollar. With just two weeks remaining until the U.S. presidential election, market dynamics are being swayed by projections favoring former President Donald Trump. His potential victory is bolstering the dollar through proposals expected to maintain high U.S. interest rates.

Major currency markets last week were notably influenced by the European Central Bank's rate cut and robust U.S. economic data. These elements are altering forecasts for U.S. interest rate changes, especially if Trump secures another term. The yen edged down slightly, while the euro and sterling remained stable. Bitcoin's strength is seen as a reaction to Trump's perceived leniency towards blockchain regulation.

The upcoming week lacks significant economic announcements, shifting focus instead to corporate earnings and election-related risks. Traders are evaluating the timing for making substantial election trades. Meanwhile, analysts suggest that the best strategy to mitigate Trump tariff threats involves holding dollars against currencies like the euro and Mexican peso.

(With inputs from agencies.)