Bitcoin surged over 7% during Asian trading hours, hitting record highs above $74,000 and nearly 10% higher against the Mexican peso (MXN) due to increasing fears of potential tariffs from Donald Trump on Mexico. The MXN has declined by 27% since March, primarily fueled by these tariff concerns, which Trump reiterated could rise to as high as 100%. He stated that if Mexico does not address illegal immigration and drug trafficking, he would impose escalating tariffs. The dollar index reached over 105.00, and the yield on the 10-year Treasury note rose significantly, impacting gold, which traded flat at nearly $2,740 per ounce. Despite the tariff concerns possibly heightening inflation, both gold and bitcoin are considered to be on a long-term bullish trend due to increasing U.S. fiscal debt. Bitcoin is up 75% year-to-date, while gold has seen a 32% increase, surpassing the S&P 500’s gains.

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