The US presidential election has come to an end, but the drama has just begun!
Yesterday, Trump won the election, and the follow-up matters immediately began. Firstly, according to CNN reports, informed sources have revealed that after President elect Donald Trump's decisive victory, his allies are rapidly competing for positions in the new government; Secondly, according to multiple media reports on Wednesday, special advisor Jack Smith is discussing with officials from the Department of Justice on how to close two federal criminal cases against President elect Trump; Thirdly, tech giants express their support. Amazon founder Jeff Bezos, Meta's Mark Zuckerberg, and Apple's Tim Cook and other leaders of large tech companies congratulated President elect Trump on Wednesday via social media.
From a market perspective, virtual currencies have surged, with Bitcoin breaking through $75000. In the past 24 hours, a total of 140789 people have been liquidated, with a total liquidation amount of $595 million. In addition, people hope that Trump's protectionist policies can benefit more companies focused on the domestic market, which has pushed small cap stock prices measured by the Russell 2000 Index to their highest level in nearly three years.
Not yet on stage, the play has already begun
Insiders have revealed to CNN that after President elect Donald Trump's decisive victory, his allies are rapidly competing for positions in the new government. Those with specific positions have started to engage with members of Trump's inner circle, but Trump has largely avoided these conversations in recent weeks.
Before the election, transition leaders Howard Lutnick and Linda McMahon met with potential candidates for some senior positions within the government to discuss specific matters related to the transition period. In the past few months, Trump has occasionally revealed some possible government candidates. Now, Trump cannot ignore decisions about who will hold key positions in his administration, which are responsible for implementing the President elect's comprehensive plan to reshape the federal government.
A key decision that Trump must make is how to deal with high-profile supporters who supported his campaign in the last few months, including Robert F. Kennedy Jr. and Elon Musk, owner of Tesla, SpaceX, and X. A source familiar with Musk's situation said that considering what a full-time government position means for his role in the companies he manages, it seems unlikely that he would want a full-time government position. But today it was reported that Musk commented on the election results on social platform X, stating that a thorough reform of the US government is imminent, which will end the suffocating bureaucracy and crazy deficit spending. There is much controversy surrounding Kennedy's arrangements.
In addition, according to multiple media reports on Wednesday, special advisor Jack Smith is discussing with officials from the Department of Justice how to close two federal criminal cases against President elect Trump. The decision was made at a time when the department was seeking to comply with a long-standing policy that the current president cannot be sued, and continuing to sue in the weeks leading up to the inauguration ceremony would be almost meaningless.
Tech giants are starting to extend olive branches to Trump one after another. Amazon founder Jeff Bezos, Meta's Mark Zuckerberg, and Apple's Tim Cook and other leaders of large tech companies congratulated President elect Trump on Wednesday via social media. The technology industry is preparing for the new policy stance brought by the new Trump administration, but any of these policies could quickly change according to the president's ideas.
Super Fluctuations
Due to investors' desire for Donald Trump to reduce regulation of digital assets, Bitcoin has soared to a historic high. The world's largest cryptocurrency rose 7% to just over $75000, surpassing its peak in March. In the past 24 hours, a total of 140789 people have been liquidated, with a total liquidation amount of $595 million. Trump's return to the White House is seen as a more relaxed path towards cryptocurrency regulation.
The options market reflects the upward trend of Bitcoin, with open interest levels approaching a historical high of $25.2 billion, slightly lower than the historical high of $30.2 billion in March. At the same time, the trading volume of options also surged to $2.9 billion, reflecting the growing interest of investors in the future price trend of Bitcoin.
The report points out that the ratio between put options and call options is almost equal, indicating that investors are preparing for potential returns and downside risks. The report also emphasizes that the volatility risk premium (VRP) is currently 27.9%, indicating that traders expect significant price fluctuations in the future. The increase in implied volatility of short-term Bitcoin options reflects that the market is preparing for turbulence, indicating that the cryptocurrency sector may further rise or fluctuate in the coming days.
On the other hand, the yield on US 10-year bonds surged 0.19% to 4.48%, reflecting expectations of strong economic growth and larger deficits under Trump's leadership, which could lead to higher interest rates and inflation. The US dollar has experienced its largest increase since 2020. Of course, the other side of the strengthening of the US dollar is the weakening of other currencies: due to the potential slowdown in economic growth caused by US tariffs, the euro has fallen.
It is worth noting that the prospect of a relaxed regulatory environment may facilitate trading flows, driving investors to bet on stocks of large tech companies and banks, including Discover Financial, Capital One, and Goldman Sachs. In addition, people hope that Trump's protectionist policies can benefit more companies focused on the domestic market, which has pushed small cap stock prices measured by the Russell 2000 Index to their highest level in nearly three years.