Trump's election defeat triggered a chain reaction, with cryptocurrencies closely linked to him hitting successive new lows, and the only two hot crypto sectors—privacy and perpetual contracts—cooled sharply.

Following the conclusion of the U.S. midterm elections on November 3, the crypto market’s momentum plummeted due to factors including slower crypto deregulation and rising interest rate hike expectations. Market panic reignited yesterday after a viral meme falsely claiming NVIDIA CEO Jensen Huang had stepped down, leading to further tightening of liquidity for risk assets, with the crypto market bearing the brunt. The two only hot sectors in the market—privacy coins and perpetual DEXs—have cooled sharply. Among privacy coins, ZEC, which had defied market trends and held its value over the past six months, has now fallen by more than 30% in the past week, underperforming Bitcoin. Driven by ZEC, the entire privacy coin sector saw a deep pullback: XMR dropped 18% in the past week, Dash fell 13.7%, and NEAR declined 11.1%. On the other hand, the perpetual DEX sector also saw a notable pullback amid doubts about the sustainability of U.S. stock AI trading and growing uncertainty over crypto regulation. After ICE, parent company of the New York Stock Exchange, announced a partnership with Trade.xyz, HYPE’s price once neared its all-time high. However, Trump’s crushing midterm election defeat led the market to return to a cautious wait-and-see stance on U.S. stock derivatives regulation, causing HYPE’s price to plummet. It has fallen 24% in the past two weeks, while LIT, which follows a similar investment logic, dropped 9.2% in the past week. Finally, tokens closely linked to Trump fared even worse: both WLFI and the meme coin TRUMP have hit recent all-time lows, with the latter plunging 44.8% in the past 30 days, far outpacing the market’s average decline.