Summary

The cryptocurrency industry went all-in on this election, wagering millions on candidates friendly to their anti-regulation stance – and it paid off. In a closely watched race, Ohio’s Senate Banking Committee Chair Sherrod Brown, a fierce advocate for crypto oversight, was ousted by GOP challenger Bernie Moreno, whose campaign was boosted by $40 million from crypto interests. Brown’s loss marks a significant setback for regulatory efforts that have been building momentum under his leadership.

Crypto’s influence didn’t stop in Ohio. The industry backed candidates from both sides of the aisle, supporting Democrats like Michigan’s Elissa Slotkin, who secured an open Senate seat with significant financial support from crypto players. The crypto industry’s bipartisan strategy is strategic: with regulation looming, they’re doing whatever it takes to keep government oversight at bay.

Infamous crypto mogul Sam Bankman-Fried, now awaiting trial, was a high-profile Democratic donor who covertly contributed to the GOP as well, underscoring how crypto’s dollars cross political lines. But the controversy surrounding Bankman-Fried, who’s accused of massive fraud through his failed FTX exchange, has exposed the industry’s darker side. Billions of dollars have evaporated in crypto collapses like FTX, eroding consumer trust and revealing the high risks of a mostly unregulated market.

Critics argue that the crypto industry operates with little transparency, often pitching itself as either a new-age currency or a pseudo-stock market but with no real backing for its assets. Consumers who dive into crypto are taking on significant risk, often with little understanding of what they’re buying. Without meaningful regulations, almost anyone with a server can create and sell a cryptocurrency, sidestepping the rigorous oversight applied to traditional financial institutions.

Despite high hopes for responsible practices, the crypto industry has yet to prove it can self-regulate. Brown’s departure raises concerns that the few advocates for crypto regulation may be dwindling, just as Trump’s administration is expected to roll back regulatory efforts. With Trump’s promise to cut down the “administrative state,” fraud, spam, and cyber scams could rise, leaving consumers with even less protection from white-collar crime.

As crypto’s coffers fuel election campaigns, the industry’s political investments are more than just contributions—they’re calculated moves to keep the wheels of deregulation turning, potentially at the public’s expense. While there may be money to be made, many worry it’s the average consumer who will bear the brunt of a virtually unchecked, high-risk market.

Summary

Financial markets took off in a whirlwind rally following Donald Trump’s presidential victory, despite lingering concerns about his aggressive plans for tariffs, tax cuts, and mass deportations. Now, a week later, the initial surge has started to level off. The three major U.S. stock indexes pulled back on Tuesday after climbing nearly 5% since the day before the election. Here’s a look at the sectors and companies that have come out on top so far—and what investors might expect in the months ahead.

Tesla: Big Bets on a Musk-Trump Alliance

Tesla’s stock skyrocketed over 35% since November 4, reclaiming a market value above $1 trillion for the first time since 2022. Investors are banking on a potential reduction in regulatory pressures on Tesla, especially on safety probes into features like self-driving. Trump’s alliance with Elon Musk could also ease any challenges Tesla faces with U.S.-China relations, critical to its global expansion. While Trump may cut federal support for electric vehicles, analysts say this could actually bolster Tesla’s competitive edge by making it harder for rivals to close the gap.

Cryptocurrency: Betting Big on a New Era

Bitcoin has surged more than 25% to break new records, briefly surpassing $89,000, as Trump’s victory ignites hopes of a friendlier environment for cryptocurrency. Investors believe the era of tough crypto regulations could end, especially since Trump, who once derided crypto, now vows to make the U.S. the “crypto capital of the planet.” He has even proposed creating a national Bitcoin reserve and ousting SEC chair Gary Gensler, who has led a regulatory crackdown on crypto firms. Congress could also become more crypto-friendly, bringing a long-awaited regulatory overhaul closer to reality.

Big Banks: Bracing for Lighter Regulation

Shares in major banks have soared since the election, as Trump’s victory fuels expectations for relaxed financial regulations. Trump is expected to steer decisions on rules that dictate how much capital banks must keep in reserve. He may also remove FTC head Lina Khan, known for her tough stance on monopolies, which has stifled some big bank deals. Banks like Capital One and Discover, which are eyeing mergers, saw their stock climb over 15% on optimism for a smoother regulatory path ahead.

Private Prisons: Positioned for Growth

Shares in private prison giants GEO Group and CoreCivic have spiked nearly 70% since November 4. The spike reflects anticipation that Trump will revive business for these companies, especially as he prepares to implement tough immigration policies that could drive demand for detention facilities. Biden’s administration had cut federal contracts with private prisons, but Trump’s promises to ramp up deportations suggest that policy could soon be reversed.

The Dollar: Soaring on Rate Hike Bets

The dollar index hit its highest level since April, climbing over 2% in the past week. This surge benefits American tourists abroad but sends a mixed signal for the U.S. economy. The dollar’s strength partly hinges on expectations that Trump’s tax cuts, reduced immigration, and potential trade barriers could keep inflationary pressures high, leading the Federal Reserve to maintain elevated interest rates longer than previously expected.

With Trump’s policies taking shape, the market rally’s trajectory remains uncertain. Investors are left to weigh a mix of pro-business promises and uncharted economic shifts in what could be a volatile but potentially lucrative term ahead.

Summary

Bitcoin surged to an unprecedented peak on Wednesday, smashing past $93,000 as the crypto community rallied behind Donald Trump’s re-election victory. The excitement around Trump’s comeback is palpable, sending ripples across the crypto market and bringing meme-coin Dogecoin along for the ride, spiking as much as 150% since election day.

Trump’s latest moves seem to have sealed a new crypto-friendly administration. Following his win, he tapped billionaire entrepreneur Elon Musk and venture capitalist Vivek Ramaswamy to lead the “Department of Government Efficiency” (Doge), an external advisory board aimed at reforming public spending. Musk, famously supportive of cryptocurrency, is now positioned to drive a dramatic shift in government efficiency.

Crypto bulls are buzzing. Since Trump’s win, Bitcoin has soared by more than a third. With influential figures like Musk in his corner, Trump is set to usher in an era that crypto enthusiasts have long awaited. Howard Lutnick, CEO of Cantor Fitzgerald and a co-chair of Trump’s transition team, has also expressed optimism, suggesting Trump’s economic advisors may include a fresh wave of crypto advocates.

Crypto faced serious headwinds during the Biden administration, as regulators tightened their grip on the sector. The Securities and Exchange Commission (SEC) under Gary Gensler aggressively pursued regulation, particularly after the notorious collapses of FTX and Binance, both shaken by fraud scandals. Sam Bankman-Fried of FTX made headlines with high-profile legal troubles, adding fuel to the regulatory fire.

But crypto’s champions have been waiting for a moment like this. In Ohio, for instance, blockchain entrepreneur Bernie Moreno defeated Democratic Senator Sherrod Brown, signaling strong grassroots support for crypto in key races. Brad Garlinghouse, CEO of Ripple, captured the mood by declaring, “The Biden administration’s war on crypto is coming to an end,” adding that this shift could be transformative for America.

In a final rallying cry, Trump announced that Doge’s advisory group would partner with the White House’s Office of Management and Budget. They aim to develop a “lean, entrepreneurial approach” to governing. Musk himself took to X (formerly Twitter) to announce plans for transparency, promising to share all of Doge’s initiatives online. “If the public thinks we’re cutting something important—or keeping something wasteful—let us know!” Musk tweeted.

With the crypto-friendly gears in motion, the industry is bracing for a dramatic realignment. Trump’s win has ignited hopes for a powerful crypto resurgence, and his team of heavyweight allies may just be the catalyst needed to propel Bitcoin and the broader crypto market to unprecedented heights.

Summary

Wall Street erupted as Donald Trump scored an unprecedented victory, securing a second term in the White House. The Dow Jones hit a historic high, while the dollar soared, logging its biggest single-day gain in eight years. But the real stunner? Bitcoin skyrocketed to a jaw-dropping $75,999, thanks to Trump’s promise to make the US the “bitcoin superpower of the world!”

The mood on Wall Street was electric, with traders celebrating as major stock indexes surged. Banks, in particular, rallied, with investors banking on Trump’s promises of tax cuts and a ramp-up in tariffs. They’re betting that his pro-business stance will boost the economy, even if it means higher inflation and fewer interest rate cuts from the Federal Reserve. Higher interest rates may not please everyone, but for investors, they spell juicier returns on dollar-denominated assets.

Bitcoin Booms as Trump Embraces Crypto!

Trump‘s embrace of Bitcoin and his promise to turn the US into the top crypto nation marks a sharp departure from the Biden administration’s crackdown on the industry. Trump’s also made waves by hinting at firing SEC chair Gary Gensler, who’s been tough on crypto firms. And with billionaire Elon Musk now set to lead an audit on government waste, crypto fans are more bullish than ever!

Tesla, the electric vehicle giant Musk leads, saw its shares rocket up by 14%—an incredible two-year high. Musk, a vocal supporter of cryptocurrencies, has thrown his weight behind Trump, adding a powerful ally to Trump’s crypto ambitions. His influence could bring Bitcoin even more into the mainstream.

Global Markets Shake as US Dollar Flexes Muscle

The Trump effect wasn’t limited to US stocks and crypto. The dollar shot up by nearly 1.7% against the euro, yen, and pound, leaving other currencies in the dust. The pound, for example, took a nosedive to levels not seen since August, while the euro also saw a steep drop, sliding nearly 2% against the dollar.

Europe’s major indexes, like the German DAX and France’s CAC 40, slipped after Trump’s win. Even in Asia, markets felt the heat—Japan’s Nikkei rose 2.6%, but China’s Shanghai Composite and Hong Kong’s Hang Seng both stumbled.

What’s Next? Trump’s Big Plans for Tariffs and Trade

Trump’s re-election also signals potential shockwaves for global trade. Trump has long threatened to slap tariffs on imports, particularly from China. European leaders are wary, and UK Chancellor Rachel Reeves already issued a statement, urging Trump to keep trade with the UK open. Economists, too, are warning of ripple effects: Ahmet Kaya from the National Institute of Economic and Social Research says the UK could take a hit, with growth potentially slowing to just 0.4% by 2025 if Trump’s tariffs impact international trade.

All Eyes on the Fed

The Federal Reserve’s next move on interest rates will be closely watched, especially with Trump’s inflation-heavy economic plans. Any sign of higher rates could shift the markets again, as investors weigh in on the Trump effect. Jerome Powell, the Fed’s chair, is set to speak on Thursday, and his comments could make or break the market’s Trump-fueled rally.