Bitcoin has seen a significant surge against the Mexican Peso (MXN) due to the “Trump trade” boost. The Republican candidate, Donald Trump, has expressed his intention to impose tariffs on Mexico, leading to a sharp drop in the MXN. This has resulted in Bitcoin soaring over 10% against the MXN, reaching record highs during Asian trading hours.
The MXN has been under pressure, declining by 27% since March, as fears of potential tariffs and protectionist policies under a Trump administration loom. Trump’s threats of imposing tariffs of up to 100% on Mexican imports have rattled the currency markets, with investors flocking towards safe-haven assets like Bitcoin.
Gold, on the other hand, has remained stable despite concerns about Trump’s tariff plans potentially leading to higher inflation. The yellow metal traded flat at around $2,740 per ounce as the dollar index rose and Treasury yields spiked. The rise in bond yields could complicate the Federal Reserve’s plans to cut borrowing costs, impacting the appeal of gold as a safe-haven asset.
Both Bitcoin and gold are considered to be on a long-term bullish trajectory, supported by the increasing U.S. fiscal debt. Gold has seen a 32% surge this year, outperforming traditional assets like the S&P 500, while Bitcoin has risen by 75%. Investors are turning to these alternative assets as a hedge against economic uncertainties and geopolitical risks.
Despite the volatility in the markets driven by Trump’s policies and the ongoing presidential race, cryptocurrencies like Bitcoin continue to attract attention as a store of value and a potential hedge against traditional financial systems. The future outlook for both Bitcoin and gold remains positive as investors seek alternative investments in the face of global economic challenges.
