Donald Trump convincingly won the US Presidential election and will assume office in January. He ran as a pro-crypto candidate on the campaign trail and is now empowered to enact sweeping, friendlier policies.

Trump will focus on halting anti-crypto actions from federal regulators and the legislature and passing comprehensive new laws for the industry.

Donald Trump’s Total Blowout

In a surprising upset, Donald Trump significantly overperformed in last night’s US Presidential election, coasting to a confident victory. Polling beforehand suggested a tossup election; however, Trump made substantial gains across nearly the entire map. He made crypto advocacy a cornerstone of his campaign, and now the industry must assess the benefits of his win.

Read More: Crypto Regulation: What Are the Benefits and Drawbacks?

President Trump made a vast array of pro-crypto campaign promises, supporting Bitcoin in particular. For example, he vowed to create a Bitcoin reserve and halt attempts to sell off the US government’s holdings.

However, he also lambasted the notion of supporting an official “digital dollar” CBDC. In other words, it looks like he will focus more on existing crypto assets.

Other than this, his promises have generally included the broader industry. In August, he vowed to make the US a “crypto capital,” offering to enact a suite of friendlier regulations. A cornerstone of this new strategy is his promise at Nashville’s Bitcoin Conference to fire SEC Chair Gary Gensler. This pledge drew raucous applause, and he seems very likely to enact it.

“I didn’t know he was that unpopular! I didn’t know he was THAT unpopular. Let me say it again: on day one, I will fire Gary Gensler!” Trump claimed in July, reacting to the crowd’s outsized approval.

A New Legal Paradigm for Crypto

Once Gensler is out of office, Trump plans to enact a series of productive crypto policies. First and foremost, he promised to stop the SEC and other regulators from continuing their crackdown on exchanges and other businesses. Several crypto opponents also lost their races, which will help blunt the momentum of hostile legislation.

Read More: Who Is Gary Gensler? Everything To Know About the SEC Chairman

As a final symbol of his plan to end crypto hostility, Donald Trump also pledged to free Silk Road founder Ross Ulbricht. This non-violent offender and early Bitcoin adopter has spent ten years in prison since his arrest and has become a cause célèbre in the community. If Ulbricht is released under Trump’s authority, it will be a real milestone for government reconciliation.

Critically, however, Trump has vowed to make positive impacts on the industry, not just reverse negative ones. Policy advisors are creating a comprehensive list of executive actions he could take once in office, as well as a strategy for a comprehensive new regulation for the space. Trump has also explored more novel use cases, such as crypto’s role in alleviating national debt.

Overall, Trump campaigned on a certifiable bonanza of possible benefits to the space. If even half of these promises get fulfilled, it could permanently alter the industry’s mercurial relationship with the federal government.

“The GOP’s commitment to clear crypto regulations and making Bitcoin a strategic reserve asset is set to be a game-changer for industry growth. Just like with the space race or recent Bitcoin mining developments, we’ve always believed that when America steps up in crypto adoption, it’ll do so with gusto—and ultimately take the lead globally. Now, we’re about to see this shift happen, making widespread U.S. crypto adoption feel more like a sure thing than ever before,” Jean-Marie Mognetti, CEO of CoinShares, told BeInCrypto.

The US Federal Reserve announced a 25 basis points (bps) interest rate cut, a bullish signal, while Bitcoin crossed a new all-time high. Fed Chair Jerome Powell directly stated that election results will not impact future planned rate cuts.

These cuts are lower than the previous September round. However, they are still considered bullish for Bitcoin and the broader crypto market.

Bitcoin and Powell’s Rate Cut Regime

On Thursday, the US Federal Reserve announced new interest rate cuts of 25 basis points (bps). This translates to a target range between 4.5% and 4.75% and is consistent with Fed Chair Jerome Powell’s stated plans to gradually cut rates in the coming months. Previous rate cuts in September proved a highly bullish signal for the crypto industry.

Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030

Bitcoin’s price already reached a new all-time high since Donald Trump’s election victory, but this new rate cut may turbocharge bullish sentiment. Indeed, on Thursday, Bitcoin made yet another new all-time high at $76,800. However, as of writing, Bitcoin has slightly retraced, currently trading at $75,800.

When the news first broke onto the crypto scene, general commentators reacted with absolute jubilation. Crypto Rover, founder of CryptoSea analysis platform, claimed that previous rate cut trends alone could take Bitcoin to $100,000.

Even bearish predictions have hinged on the notion that rate cuts would be too conservative. In September, analysts warned that perceived market instability could harm risk-on assets like Bitcoin.

Darkex Global, liquidity provider and asset exchange, theorized that Trump’s victory might dampen future rate cuts or create such instability. Fed Chair Jerome Powell addressed this.

“The election will have no impact on our policy decisions. The economy is very difficult to forecast looking past the near term. We don’t guess, we don’t speculate, and we don’t assume,” Powell stated.

Read More: How to Protect Yourself From Inflation Using Cryptocurrency

In other words, nothing in the current political climate has yet convinced the Fed that rate cuts should slow or cease. Powell emphasized his long-term goal of steadily reducing US inflation and keeping employment high. If this current trajectory of gradual slow rate cuts is working to the Fed’s satisfaction, Trump’s election will not hinder it.

The crypto market is bracing for heightened volatility as nearly $4.6 billion worth of Bitcoin (BTC) and Ethereum (ETH) options expire today.

This event comes after the US elections and the Federal Open Market Committee (FOMC) meeting. These two US macro developments were the driving forces behind Bitcoin sentiment this week.

US Elections, FOMC Drive Crypto Market Sentiment Ahead of Major Options Expiry

According to data from Deribit, 48,794 Bitcoin options contracts worth approximately $3.7 billion will expire on November 8. These contracts have a put-to-call ratio of 0.72 and a maximum pain point of $69,000.

Similarly, Ethereum’s options market is set to expire with 294,380 contracts worth $854.88 million. Today’s expiring Ethereum contracts have a put-to-call ratio of 0.65, with a maximum pain point of $2,500.

Read more: An Introduction to Crypto Options Trading.

In options trading, the maximum pain point is the level at which option holders would suffer the largest losses. It is essentially the price at which the highest number of options (both calls and puts) would expire worthless, inflicting maximum financial “pain” on traders.

Meanwhile, the put-to-call ratio gauges market sentiment by comparing the number of put options (bets on price declines) to call options (bets on price increases).

According to Deribit, the hype around the elections saw trading volumes rise to a daily all-time high of $10.8 billion on November 6. This was as expectations for a Donald Trump victory peaked. This coincided with BTC reordering what was then its all-time high at $75,100.

Greeks.live’s recent analysis outlined the impact of the recent US elections on today’s expiring crypto options contracts. The analysts noted that as the hype around Donald Trump’s victory fades, the options market is closing out profit-taking to end the election season.

“The election market is rapidly cooling off. Despite strong gains in both Bitcoin and Ether and optimistic sentiment in the crypto market, the options market is closing out profit taking in a noticeable way to end the election game,” they wrote.

Further, Greeks.live observes that Bitcoin doomsday options have fallen below 50%. A doomsday option is added to a contract to allow either the issuer or investor to redeem the contract early.

Similarly, the analysts say implied volatility (IV) is down significantly across all major terms, with ETH benefiting from today’s big gains and falling back less than BTC. Meanwhile, large holders are already planning ahead.

“Large investors have begun to lay out the end of the year market or even next year’s spring market,” the analysts added.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

Elsewhere, the FOMC decided to cut interest rates by 25 basis points (0.25%). The Federal Reserve (Fed) chair, Jerome Powell, indicated that “raising rates is not our plan.” The remarks came amid acknowledgment that people are still feeling the effects of high prices.

More interestingly, the Fed chair said he would not resign if asked to do so, cognizant of Trump’s plans to overhaul US crypto rules beyond the SEC (Securities and Exchange Commission).