Former Cleveland Fed Chair and hawk Mester recently stated that due to the potential different economic policies following Trump's election, the Fed may not cut interest rates as many times next year as the market previously anticipated in September.

Benefiting from Trump winning the presidency, the cryptocurrency market has recently seen a celebratory surge, with bitcoin rising steadily since November 5, repeatedly hitting new historical highs and nearing the $90,000 mark yesterday (12).

Former Fed hawk: The number of rate cuts in 2025 may decrease.

In addition to Trump’s election potentially bringing a more lenient regulatory environment for the cryptocurrency industry, another major catalyst for the current bull market is the interest rate cut cycle that the Fed initiated at the end of September.

However, former Cleveland Fed Chair and hawk Mester recently stated that due to potential different economic policies following Trump’s election, the Fed may not cut interest rates as many times next year as the market previously anticipated in September:

Next year, the rate of cuts will be influenced by Trump's fiscal policies.

This is not good news for risk markets. Additionally, according to the CME FedWatch tool, the market expected the probability of the Fed cutting rates by 25 basis points in December has significantly dropped from 84.4% a month ago to 55.2%, while the likelihood of the Fed pausing rate cuts and maintaining rates in the range of 4.75% to 5% has risen from 15% a month ago to 44.8%; meanwhile, no one expects the Fed to cut rates significantly by 50 basis points.

All four major indices of the usa stock market fell.

Perhaps influenced by changes in the Fed's interest rate cut expectations and investors taking profits from the rebound after the usa presidential election, the four major indices of the usa stock market all dropped:

• The sse industrial index fell 382.15 points or 0.86%, closing at 43910.98 points.

• The s&p 500 index fell 17.36 points or 0.29%, closing at 5983.99 points.

• The nasdaq index fell 17.36 points or 0.09%, closing at 19281.4 points.

• The phlx semiconductor index fell 47.75 points or 0.93%, closing at 5108.64 points.

Bitcoin dropped below 88,000 dollars.

Meanwhile, bitcoin experienced a drop around 8:00 PM last night, hitting a low of $85,091, but then quickly rebounded to challenge the $90,000 mark. Unfortunately, it was unsuccessful and dropped back down. As of the deadline, it was reported at $87,904, down 0.74% in the past 24 hours.

However, regarding the market's pullback, Fairlead Strategies Technical analysisanalyst Katie Stockton recently stated in a report:

It is quite normal for a period of market digestion to occur after such a sharp rise, and in the short term, investors may adopt a neutral preference strategy.