Reported by Bibijie:
The cryptocurrency market has reached a milestone breakthrough. Influenced by the results of the U.S. election, the prices of digital assets have significantly surged, attracting considerable attention from global investors. This phenomenon reflects not only the profound impact of political factors on the digital currency market but also highlights the increasingly important role of crypto assets in the global financial system.
From the market data perspective, Bitcoin’s price broke through a historical high of $76,330, retreating to $75,382 during the Asian trading session, marking an increase of approximately 4.8%. This breakthrough ended a previous eight-month consolidation trend, showcasing strong upward momentum. Meanwhile, other major cryptocurrencies also experienced a comprehensive rise, with Ethereum increasing by 10.25%, breaking the $2,800 threshold. Emerging projects such as decentralized exchange Uniswap and public blockchain project Solana performed exceptionally well, driving the CoinDesk 20 index up by 7.31%. (To mention again, the previously recommended Dogecoin and Avalanche funds rose by 7.8% and 10.23% today.) This broad-based rise reflects a significant boost in investor confidence in the entire crypto asset ecosystem.
A deeper analysis reveals that this surge has triggered significant volatility in the cryptocurrency derivatives market. According to professional data platform CoinGlass, the total liquidation in derivatives trading that day reached $592 million, with approximately $390 million being forced liquidations of short positions, marking the largest short squeeze in nearly half a year. This phenomenon underscores a significant shift in market sentiment, forcing many investors to adjust their pessimistic bets, further driving up market prices.
In the traditional financial markets, the performance of cryptocurrency-related listed companies was equally noteworthy. As an industry-leading cryptocurrency exchange, Coinbase’s stock price soared 31% in a single day, hitting a recent high. Bitcoin mining companies like Riot Platforms and CleanSpark saw their stock prices rise by 26.16% and 23.01%, respectively. This interconnected effect not only reflects the traditional financial market’s increasing recognition of the digital asset sector but also indicates that institutional investors are ramping up their involvement in this emerging field.
From a policy environment perspective, the inauguration of the new government might bring a more favorable regulatory framework for the cryptocurrency industry. Industry experts anticipate a series of supportive policies in the coming months, including but not limited to expanding the range of cryptocurrency ETF products, simplifying the digital asset trading process, and providing clearer compliance guidance for entrepreneurs and investors. This regulatory clarity will inject new momentum into the industry’s development. However, before the policies are officially implemented, market participants should remain cautious of the short-term volatility risks that may arise during the transition period.
Technical analysis shows that Bitcoin breaking out of the eight-month consolidation range is of significant technical importance. Market analysts generally believe that with the elimination of political uncertainties, the digital currency market is likely to maintain its strength in the coming months. The current market has cleared major obstacles to further gains. Additionally, the upcoming Federal Open Market Committee meeting by the Federal Reserve will be a key factor influencing the market, potentially further supporting asset prices.
Looking ahead, with the Republican Party likely controlling both the Senate and the House, two bills with significant implications for the cryptocurrency industry may accelerate their progress. The “Financial Innovation and Technology Act for the 21st Century” (FIT21) is expected to expand the Commodity Futures Trading Commission’s (CFTC) regulatory authority over cryptocurrencies, while the advancement of the stablecoin regulatory framework bill will provide clearer operational rules for the market. These developments will be key time points for cryptocurrency price surges, potentially providing entry opportunities at low points in December and January. These legislative advancements will lay a firmer legal foundation for the industry’s development.
From the market structure perspective, Bitcoin’s current support levels are mainly concentrated at $63,546 (200-day moving average) and $64,337 (short-term holder cost basis). There is significant sell pressure near $75,000, (refer to the previous article on the public account, the high point will inevitably see no entry, selling will become a huge pressure, and not being able to sell means no profit), while the $70,000-$73,000 range has notable buying support. This price structure suggests that despite potential short-term fluctuations, the market as a whole remains in a strong stance. It is also important to note that the market may exhibit a “sell-off followed by a rebound” pattern post-election. Prices may briefly retreat to the $65,000-$67,000 levels before rising above $70,000 on positive news. Market fluctuations should be watched vigilantly, with a reasonable control of positions. The strategy for buy and sell operations becomes particularly crucial; entering at high points may not incur losses, but the correction period could be lengthy. The current price should not warrant new entries, as every penny of Bitcoin’s rise now is at historical highs!
In summary, the current cryptocurrency market is at an important historical turning point. The improvement in the political environment, increased institutional investments, technical breakthroughs, and policy expectations are all positive factors that provide new development opportunities for the market. However, investors should still closely monitor the specific implementation of regulatory policies and remain vigilant against potential market volatility risks. While seizing opportunities, it is recommended to adopt a relatively balanced investment strategy to avoid the risks brought by excessive chasing of high prices.
