BREAKING NEWS: Bitcoin & Stocks CRASH After Election Shock — What Happens Next?

Markets swung sharply after the election: an initial selloff was followed by a rebound, then a steep decline on Thursday, November 5. Bitcoin fell 5% and Ethereum 7%, while the Nasdaq was heading toward a loss of about 5%; the host said some semiconductor and storage stocks were down 15–20% or more. One speaker put the market-value wipeout above $2.8 trillion and called it the largest single-day loss in market history, while cautioning that the move covered only about 24–48 hours of trading. Crypto declined alongside equities, and Hyperliquid stood at $78, down 16% for the week, despite what Brian described as bullish news involving the New York Stock Exchange.

The host characterized the election as a Democratic sweep, citing 54 Senate seats, 251 House seats and 28 governorships, and said prediction markets had largely anticipated the results. He singled out Texas’s governor’s race and Kansas as surprises; a speaker said Kansas had elected its first Democratic senator since 1932, while the host was uncertain whether the state’s first Democratic senator or governor since then had been elected. Brian had initially seen the market rebound as a positive response to reduced uncertainty, but said Democratic control brought uncertainty back and coincided with broad weakness across stocks and crypto.

With a Republican president facing a Democratic House and Senate, the host expected gridlock and few drastic legislative changes over the next two years, alongside more scrutiny and hearings. The speakers said markets had generally regarded gridlock as acceptable, but uncertainty around what the new Congress might do was feeding volatility. They remained bullish over the long term on crypto, AI and technology, even as they anticipated a difficult near-term stretch. One speaker described the current market conditions as a “clog” that could also create opportunities.

The Nasdaq decline also reflected doubts about whether heavy AI investment will generate returns and whether data centers can keep expanding. Speakers said scrutiny of data-center construction, including concerns about job losses, could slow compute growth and reduce demand for chips and related infrastructure. AI-related capital spending had helped support markets, they argued, contrasting the current doubts with a year earlier, when companies discussing AI on earnings calls could see their stocks rise 20%. Tom Lee maintained that AI demand could make compute scarce, push token prices higher and keep the AI trade alive.

The political outlook for crypto remained unsettled. Brian questioned whether the Clarity Act would get another chance and whether more aggressive regulation might follow. Possible Democratic market-structure legislation could give the SEC a larger role and narrow the CFTC’s, while proposals discussed by the speakers included consumer protections, proof-of-reserves, custody rules and ethics provisions. House discussions also included a crypto investor and consumer bill of rights amendment that could incorporate and amend the Clarity Act. The speakers said it was unclear whether such proposals would deliver regulatory clarity or increase government control.

The speakers said the Senate included a majority they classified as pro-crypto or neutral; one cited 51 pro-crypto senators across 31 states, while 12 states had two senators classified as crypto skeptics. They argued crypto could remain bipartisan, though investigations into alleged crypto-related activity involving Trump, his family, World Liberty or Trump Coin could cast the industry in a negative light even as they create a route to legislation. They expected disputes to generate substantial noise over the next two years, with Democrats potentially courting crypto voters ahead of 2028, and stressed that not all Democrats oppose crypto.

The Fear and Greed Index had shifted into fear after reading 67, or greed, the previous month. One speaker doubted Bitcoin would reach $200,000 if the economy weakened and said the possibility of a December Fed rate increase would depend on economic data, including whether inflation remained hot. Brian also discussed Stretch, which offers an approximately 12% annualized dividend and is designed to trade near $100 per share; falling below that level makes it harder for Strategy to issue shares and raise capital. He said Strategy spent more than $2 billion buying back shares to support it. Stretch recovered to $100, its first time at that level since at least May or June, though speakers differed on whether they would buy it.