Bitcoin Nears 90,000 while Tesla Tops $1 Trillion Market Cap

Bitcoin soared to nearly $90,000 amid strong flows into US Bitcoin ETFs as President-elect Trump’s Republican Party appeared set to control both houses of Congress, boosting expectations of pro-crypto legislation and friendlier fiscal policies. The US dollar hit a four-month high, while the euro and yuan slumped on tariff concerns. The FTSE 100 enjoyed a brief respite from selling on Monday but European markets look set for a soft start on Tuesday.

Equities

The FTSE 100 rose 0.7% on Monday, recovering from a recent three-month low as UK and European stocks edged higher ahead of upcoming economic data releases. The FTSE 250 index climbed 1%, boosted by gains in individual stocks.

Croda, a specialty chemicals company, led the gains among FTSE 100 companies with a 5.2% increase following a report of 5% growth in third-quarter sales, lifting the chemicals sector overall. Meanwhile, NatWest gained 3.7% after it announced a £1 billion share buyback from the British government, enhancing investor confidence.

European stocks joined the rally, with the pan-European STOXX 600 index rising 1.15%, while Hong Kong stocks slipped following China’s debt relief announcement, which fell short of some investors' expectations for economic support.

In the US, major stock indices continued last week’s rally following Donald Trump's re-election, with the Dow Jones Industrial Average up 1% to 44,426, the S&P 500 up 0.34% to 6,015, and the Nasdaq Composite adding 0.11% to 19,308.

Leading the gains, Tesla soared 10%, achieving a market valuation of $1 trillion, driven by robust investor demand. Crypto-linked stocks also surged, as companies such as Coinbase, MARA Holdings, and Riot Platforms each gained more than 10%, reflecting Bitcoin’s new all-time high above $82,300. Large banks such as Goldman Sachs and JPMorgan Chase also saw gains, rising 2% and 1.6%, respectively, amid expectations of favourable policies under Trump’s administration.

Forex & Commodities

Bitcoin climbed to a new record high of $89,637, driven by Trump’s pro-crypto stance and his ambition to establish the US as a global crypto leader. Analysts suggested that bitcoin could approach $100,000 by year-end if current trends hold.

The US dollar index rose 0.16% to 105.59 early Tuesday, nearing a four-month high following gains on Monday. The dollar’s strength came amid expectations of economic growth under the incoming Trump administration, which has prioritised US trade and manufacturing.

The euro weakened against the dollar, hitting a six-month low at $1.0653, as market sentiment around potential US tariffs on European goods impacted confidence in the eurozone’s economic outlook.

In commodities, gold fell 2.6% to $2,614 per ounce, weighed down by a stronger dollar that makes dollar-denominated assets more expensive for foreign buyers. Oil prices also slipped following China’s underwhelming economic stimulus package, which failed to boost market confidence in demand recovery. Brent crude dropped by $2.04, or 2.76%, to settle at $71.83 per barrel.

China’s latest data showed weak inflation in October, with consumer prices rising at their slowest pace in four months, while producer prices continued to deflate, signalling ongoing economic struggles.