Wall Street Rallies as Trump Wins Second Term, Crypto Market Cap Hits $2.5T

Following Donald Trump's re-election as President of the United States, the federal funds rate is expected to decrease further. This news caused a widespread rally in risk assets, including major indexes like the S&P 500 and Nasdaq Composite, as well as cryptocurrencies, which saw a market cap increase to $2.5 trillion. The gains were attributed to momentum-based hedge funds reducing their risk exposure due to the close race and uncertainty surrounding the election outcome. This allowed for short-term institutional investors to avoid hurting their performance late in the year.