Bitcoin Surges Nearly 10% Against the Mexican Peso Amid Trump Trade Hopes
Bitcoin's value has increased nearly 10% against the Mexican Peso as expectations rise for Donald Trump’s potential return to presidency, coinciding with his tariff threats.
The "Trump trade" includes optimistic investments in Bitcoin (BTC), the U.S. dollar index, and expectations of increased Treasury yields while betting against the declining Mexican peso. This trade is gaining momentum as Donald Trump appears to be leading Kamala Harris in the presidential race.
Bitcoin, the leading cryptocurrency, has experienced a surge of over 7% during the Asian trading hours on Wednesday, reaching record values exceeding $74,000.
The Mexican Peso, meanwhile, has dropped more than 3% against the U.S. dollar due to fears surrounding Trump's proposed tariffs, leading to a nearly 10% increase in the BTC/MXN trading pair, currently valued at 1.548 million on the Binance platform according to data from TradingView.
Since March, the MXN has faced a 27% decline, mainly driven by worries that a potential Trump administration would implement protectionist measures. Recently, Trump reiterated his desire to impose a 25% tariff on imports from Mexico, a significant trading partner for the U.S., indicating a possible escalation to 100% tariffs if border security concerns are not addressed.
Trump's Statements: "If they don’t stop this onslaught of criminals and drugs coming into our country, I am going to immediately impose a 25 percent tariff on everything they send into the United States of America."
"If that doesn’t work, I’ll make it 50, and if that doesn’t work, I’ll make it 75. Then I’ll make it 100," he continued.
Additionally, Trump has committed to renegotiating the United States-Mexico-Canada Agreement (USMCA), which is set for review in July 2026. As reported, Trump leads in the electoral counts 230 to 210 against Harris.
Robin Brooks, a Senior Fellow at the Brookings Institution, emphasized the peso's significant weakening, noting the anticipation for large market movements should Trump win the election.
Gold has remained relatively static, trading at around $2,740 per ounce, with increased pressure from rising dollar indices and Treasury yields, which typically detract from gold's attractiveness as a safe investment amidst Trump's tariff threats.
