Bitcoin spikes to record as traders expect Trump's victory to boost cryptocurrencies

Former crypto-sceptic Trump has had a change of heart ahead of the election, and made strong pro-crypto statements during his campaign, promising to make America "the crypto capital of the planet"

Bitcoin prices soared on Wednesday following news that Donald Trump had won the US presidential election - with investors betting he will look favourably on the digital currency.

The price of bitcoin leaped up nearly 8% in early trading, hitting a record high of $75,345.00 before the price fell back to around $73,500.00.

Former crypto sceptic Trump has had a change of heart regarding cryptocurrencies ahead of the election, and made strong pro-crypto statements during his campaign.

He pledged to make America "the crypto capital of the planet" and create a “strategic reserve” of bitcoin. His campaign accepted donations in cryptocurrency and he courted crypto fans at a Bitcoin conference in July. He also launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.

“Bitcoin is the one asset that was always going to soar if Trump returned to the White House," said Russ Mould, investment director at AJ Bell, a British online investment platform. After touching its new high, the market is now speculating about “when, not if, it will smash through $100,000," he said.“ Trump has already declared his love of the digital currency and crypto traders now have a new narrative by which to get even more excited about where the price could go,” Mould said.

In the UK, the FTSE 100 soared 125 points to 8297 in early trading, with the strong dollar expected to boost earnings of UK-listed multinationals on the index that make the bulk of their money abroad. Meanwhile in the longer term UK economic growth could be slashed if Mr Trump enacts a raft of threatened policies, including tariffs on imports, some experts have warned.

The US is the world's largest economy and whatever happens is felt around the globe. The cost of US and UK borrowing rose in the run-up to the election amid concerns about the price-rising impact of a Trump presidency. Trump campaigned on a promise to impose tariffs of between 10% and 20% on foreign imports as much as 60% on Chinese goods. Analysts warned that would be "bad news for Europe", and the UK. Ahmet Kaya, a NIESR economist, said: “The UK is a small, open economy and would be one of the countries most affected.”

NIESR warned the impact of tariffs on UK goods, plus higher prices due to a weaker pound against the US dollar, could slash UK economic growth next year from its previously predicted 1.2% to just 0.4%, and in 2026 from 1.4% to barely any growth. Those forecasts are based on Mr Trump imposing 10% tariffs on all goods and services to the US, with the possibility that there may be lower rates for certain products, which would lessen the impact.