First, a market-undervalued development: On November 5, Trump faced strong voter backlash on Tuesday, with Republicans suffering a crushing defeat in the elections. Voters ranked the cost of living among their top concerns. Some Fed watchers’ initial assessment is that this could ease the political pressure on Fed Chair Warsh, allowing him to reduce political interference and refocus on controlling inflation.
Here’s a look at the timeline: Since Trump was reelected in 2024, he has repeatedly called for rate cuts, backed an unprecedented criminal investigation into renovations to the Fed’s headquarters, and tried to remove a sitting Fed governor. In May this year, he chose Warsh to lead the Fed. Warsh had previously made an uncharacteristic pivot in favor of rate cuts, raising concerns among Democrats. The election results have now changed the political landscape surrounding the Fed. The chain of reasoning is: less political pressure → a marginal recovery in Fed independence → a return to inflation as the focus of policy → rate-cut expectations for the future path of interest rates may be reassessed. 📉
For crypto markets, this means there’s another variable on the denominator side of macro pricing. Currently, $BTC is at 80,343.76 (+2.17%), down 3.6% over 30 days and up 3.9% over 7 days. Its 30-day range is 76,816.00–84,093.42, and the current price is 80,363.05, in the upper-middle part of the range; $ETH is at 2,419.33 (+3.65%), and $BNB at 716.57 (+1.89%). The Fear & Greed Index is 50, neutral. Prices are recovering, but sentiment hasn’t caught up, suggesting the market is still waiting to see how the macro outlook unfolds. 🧐
In conclusion, I wouldn’t treat this news as a directional signal by itself. It’s more like an “expectations adjustment”: if political interference really does ease and inflation gets more weight, rate cuts may come more slowly than previously priced in, constraining the valuation upside of risk assets. Taking a data-driven view, first watch whether $BTC can hold above the top of its range and whether the Fear & Greed Index can move out of neutral territory; then we can talk about trends.