Crypto Finance, which says it’s shaping the future of the financial industry, has shared entitled, Market Deep Dive: Markets React to Trump’s Election Win and BTCUSD All-Time High.
Crypto Finance, a key player focused on digital assets since 2017, noted that Trump has won the election by a wide margin, thus helping with “sparking a strong market reaction.”
The update from Crypto Finance added that the USD “surged 1.68% to 105.44 following the news, though it has since pulled back to around 104.5.”
Crypto Finance, which says it stands as a “trusted” FINMA-regulated partner for financial institutions seeking to engage and advance within the digital assets landscape, added that US Treasury yields rose as well, “with the 10-year up 6 bps to 4.34% since Tuesday.”
Crypto Finance, which enables an integrated platform offering comprehensive access to investing in, managing, trading, and securely storing digital assets, pointed out that the 10-year breakeven inflation rate “remained stable at 2.33%, reflecting market expectations of stronger economic growth and increased fiscal spending.”
Crypto Finance also mentioned in its report that risk assets performed well, showing that “a strong USD alone is not enough to weaken real assets.”
The report further stated that equity volatility took “a sharp dive, with the VIX dropping to 15.19, reflecting the market’s view that the real risk event would have been a Democratic victory.”
A recent FOMC meeting brought an “anticipated 25 bps rate cut, and markets expect another 25 bps cut at the December meeting.”
Crypto Finance added in its report that the outlook for next year suggests “a year-end target rate of 3.75%—a full 100 bps lower than current levels.”
Compared to last week, this stance “remains unchanged.”
According to Crypto Finance’s update, this continuity should be “positive for the markets, though it raises questions about the Fed’s independence under the Trump administration.”
The report also noted that some may even view the Fed as “having already become a highly politicized.”
Turning back to crypto, BTCUSD is up “by USD 7,400 since Monday, aligning with expectations implied by volatility markets.” And at the time of writing, the flagship crypto has surged even higher, approaching the $78,000 mark.
The report added that the term structure “remains rich, with term-futures trading at 3 bps/day and implied volatility relatively flat at 50v for weeklies and 53v for 30-day.”
Crypto Finance also noted that with “7-day realized volatility at 65%, this suggests a potential relaxation back to the 1-year average. The 30-day realized volatility is trading at median values, consistent with volatility expectations.”
Call skew remains high, “showing little interest in fading the move.”
BTC dominance peaked at “60.5% on Tuesday and has since eased to 59.8%, indicating some rotation out of BTCUSD.”
Altogether, the Crypto Finance blog post noted that they “believe markets need some time to digest the current price action.”
Among the standout assets, Crypto Finance continue to “highlight two clear winners: SOL and ETH.”
SOLUSD is trading “at USD 200 at USD 93 billion MC up 26% since Tuesday, while ETHUSD is trading at USD 2,920 with a market cap of USD 350 billion, up 21% since Tuesday.”
With the ETHBTC ratio still below “0.04, it is worth noting that an ETHBTC ratio of 0.05 (2022’s bottom) would imply an ETHUSD price of USD 3,800—still far below the March highs.”
Solana, meanwhile, continues to show strength “across the board, with a steady buy-bias from their client base.”
Crypto Finance also noted: With a Republican President, Senate, and Supreme Court, could this be the beginning of a “golden age” for crypto regulation?
The report added that Trump has made several promises “regarding crypto, though in their view, many have yet to be fully priced in by the market.”
That said, the report concluded that these changes will “likely take time to materialize.”
