Bitcoin is nearing the $90,000 mark, driven by the “Trump effect” and positive market reactions in Asia. Following a peak of $89,599, slight adjustments were noted as optimism grew around Trump’s pro-crypto stance. Meanwhile, Asian markets showed mixed results, with Hong Kong’s Hang Seng index declining amid anticipation of earnings from major Chinese firms. Tokyo’s stock market gained momentum following political stability and significant government investment plans, while the semiconductor sector faced challenges due to U.S. restrictions.
Bitcoin Soars Towards $90,000
On Tuesday, November 12, Bitcoin is making headlines as it approaches the remarkable $90,000 milestone during early trading sessions in Asia. This surge is largely attributed to the “Trump effect,” coinciding with the anticipation of earnings reports from major Chinese companies and a rebound in the Tokyo market.
Bitcoin’s Unstoppable Ascent
Bitcoin continues to break its own records, hitting an impressive peak of $89,599 around 11:20 PM GMT on Monday, before slightly retreating to $89,200 by 1:30 AM GMT on Tuesday. The cryptocurrency market is experiencing a significant boost following Donald Trump’s return to the political forefront, as he promises to deregulate the crypto sector, unlike the current administration’s more stringent policies. Stephen Innes from SPI Asset Management remarked, “Trump’s favorable view on cryptocurrencies and his ambitious commitment to establish the U.S. as the ‘global capital of bitcoin and cryptocurrencies’ have rejuvenated the enthusiasm surrounding digital currencies.”
Chinese Markets Await Earnings
As trading began in Hong Kong, the Hang Seng index witnessed a decline of 0.48%, settling at 20,329.89 points around 1:35 AM GMT, as investors awaited earnings reports from tech giants Tencent and Alibaba. The recently announced €780 billion increase in local government debt in China is intended to stimulate economic activity, yet it fell short of expectations for additional stimulus measures to address the country’s sluggish consumption and real estate challenges. Charu Chanana, currency strategist at Saxo Capital Markets, commented, “This cautious strategy might suggest that Beijing is preserving its resources in light of potential anti-China actions from the upcoming Trump administration.”
The Shanghai composite index experienced a slight dip of 0.12% to 3,465.96 points, while the Shenzhen index managed a modest gain of 0.36%, reaching 2,141.35 points.
Tokyo Markets Gain Momentum
Following record-setting performances on Wall Street and the re-election of Japanese Prime Minister Shigeru Ishiba, the Tokyo Stock Exchange showed positive momentum. By 1:40 AM GMT, the Nikkei index had risen by 0.6% to 39,771.09 points, while the broader Topix index climbed 0.88% to 2,763.81 points. Despite losing its absolute majority in the lower house during recent elections, Ishiba’s retention of power has alleviated some short-term uncertainties, encouraging a more risk-friendly environment in Japanese markets, according to analysts at Monex Securities.
On Monday evening, Ishiba unveiled plans for over €61 billion ($10 trillion yen) in support for the artificial intelligence and semiconductor industries by 2030.
Challenges in the Semiconductor Sector
The semiconductor industry faced challenges as shares of TSMC, a leading chip manufacturer, fell in New York due to reports of U.S. government restrictions on advanced chip deliveries to China. Consequently, major Japanese firms in the sector, including Advantest (-2.07%) and Tokyo Electron (-1.71%), experienced declines on the Tokyo exchange.
In currency trading, the dollar appreciated by 0.1% against the Japanese yen, reaching 153.90 yen per dollar, while it remained stable against the euro at $1.0654.
Hong Kong Stock Exchange Declines
The Hong Kong Stock Exchange faced a significant downturn, plummeting over 3% on Tuesday afternoon, compounding losses from the previous day. Investor concerns about the Chinese economy and potential tariffs proposed by President Trump contributed to the decline, with the Hang Seng index dropping by 3.12%, landing at 19,790.47 points around 6:50 AM GMT.