The election of Donald Trump as President and J.D. Vance as Vice President is supercharging Bitcoin (BTC-USD). BTC prices topped $87,219 on November 11. Prices are more than double the $38,505 low for the year. The cryptocurrency earned the rally. Markets view the President as introducing a friendly regulatory environment.
Traders who bought Coinbase (COIN) as low as below $180 gained over 80% in only one month. MicroStrategy (MSTR) added 25.73% on Monday alone. MSTR stock is up because the firm bought $2.03 billion worth of Bitcoin stock. This company is effectively a leveraged holding company for Bitcoin, not a software firm.
In the electric vehicle industry, Tesla (TSLA) added 9% yesterday, up by 44.3% in the last week. Markets believe that CEO Elon Musk’s support for Trump will pay off. However, Musk’s political views could dividend Tesla’s customer base. Those who support the Democrats may not want to buy a Tesla vehicle.
So far, markets are willing to bet that Tesla’s lower automotive prices and lower profits are not a concern. Traders are hedging their bet on Tesla’s Cyber Truck by bidding Rivian Automotive (RIVN) stock higher. RIVN stock gained 7.3% in the last week.
EV investors should continue to avoid Lucid Group (LCID). Instead, hold Toyota (TM), General Motors (GM), and Ford Motor (F). Those firms may succeed in the hybrid automobile market.
Related Stories
