Trump's midterm election defeat triggers a chain reaction, with strongly correlated cryptocurrencies hitting new lows repeatedly, and the only two hot tracks in crypto—privacy and perpetuals—cooling down significantly.

BlockBeats news, November 13th — Since the U.S. midterm elections concluded on November 3rd, the crypto market's momentum has sharply reversed due to factors including slowed crypto deregulation and strengthened rate hike expectations. Then yesterday, Jensen Huang stepped down, triggering renewed market panic, further tightening liquidity in risk assets, with the crypto market bearing the brunt. The market's only two hotspots previously — privacy coins and perpetual DEXs — have significantly cooled.

On the privacy coin front, ZEC has reversed its counter-trend resilience of the past six months, falling over 30% in the past week and underperforming Bitcoin. Dragging the entire privacy coin sector into a deep pullback, XMR dropped 18% in the past week, Dash fell 13.7%, and NEAR declined 11.1%.

On the other hand, amid doubts about the sustainability of U.S. AI trading and heightened crypto regulatory uncertainty, the perpetual DEX sector has also seen notable retracement. After NYSE parent company ICE announced its partnership with Trade.xyz, HYPE's price briefly approached its all-time high. However, Trump's crushing midterm election defeat caused the market to return to a cautious wait-and-see stance on U.S. equity contract regulation, and HYPE's price quickly fell back, dropping 24% over the past two weeks. LIT, which follows a similar investment thesis, also recorded a 9.2% decline in the past week.

Finally, Trump-affiliated tokens have fared even worse. WLFI and the meme coin TRUMP have both recently hit all-time lows, with the latter falling 44.8% over the past 30 days, far exceeding the market average decline.