**CoinWorld Report:**
The cryptocurrency market has reached a historic milestone. Influenced by the U.S. election results, digital asset prices saw a significant surge, capturing the attention of global investors. This phenomenon not only reflects 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.
**Market Data Overview:**
Bitcoin’s price hit an all-time high of $76,330 before retracing to $75,382 during Asian trading hours, marking a 4.8% increase. This breakthrough ended an eight-month consolidation phase, showcasing robust upward momentum. At the same time, other major cryptocurrencies also demonstrated a broad upward trend, with Ethereum rising by 10.25%, breaking past the $2,800 mark. Emerging projects like the decentralized exchange Uniswap and the public blockchain project Solana performed exceptionally well, driving the CoinDesk 20 Index up by 7.31%. (Dogecoin and Avalanche Fund, which were previously recommended, rose by 7.8% and 10.23%, respectively, today.)
This comprehensive increase reflects a significant boost in investor confidence in the entire crypto asset ecosystem.
**Cryptocurrency Derivatives Market Fluctuations:**
A noteworthy aspect of this rally is the intense volatility in the cryptocurrency derivatives market. According to professional data platform CoinGlass, total derivatives trading liquidation for the day reached $592 million, with approximately $390 million from forced liquidations of short positions, marking the largest short squeeze in the past six months. This phenomenon underscores a notable shift in market sentiment, as a large number of investors were forced to adjust their bearish bets, further pushing up market prices.
**Performance in the Traditional Financial Market:**
In the traditional financial market, cryptocurrency-related public companies also attracted attention. As a leading crypto exchange, Coinbase’s stock surged by 31% in a single day, reaching a recent high. Bitcoin mining companies such as Riot Platforms and CleanSpark saw their stock prices increase by 26.16% and 23.01%, respectively. This linkage effect not only illustrates the increasing acceptance of the digital asset sector in the traditional financial market but also suggests that institutional investors are expanding their presence in this emerging field.
**Policy Environment Analysis:**
From a policy perspective, the new administration’s tenure may bring a more favorable regulatory framework for the cryptocurrency industry. Industry experts predict that a series of supportive policies may be introduced in the coming months, including but not limited to expanding the range of crypto ETF products, simplifying digital asset trading processes, and providing clearer compliance guidance for entrepreneurs and investors. This regulatory clarity will inject new momentum into the industry’s development. However, market participants should remain vigilant about potential short-term volatility risks during the regulatory transition period before the policies are fully implemented.
**Technical Analysis:**
The technical significance of Bitcoin breaking out of its eight-month consolidation range cannot be understated. Market analysts generally believe that, with political uncertainties diminishing, the digital currency market is likely to maintain its strength in the coming months. Currently, the market has cleared major obstacles for further gains. Additionally, the upcoming Federal Open Market Committee (FOMC) meeting could be a key factor influencing market dynamics, potentially providing further support for asset prices.
**Future Outlook:**
Looking ahead, with the Republican Party potentially controlling both chambers of Congress, two bills that could significantly impact the cryptocurrency industry may advance. The “Financial Innovation and Technology Act of the 21st Century” (FIT21) is expected to expand the Commodity Futures Trading Commission’s (CFTC) regulatory authority over cryptocurrencies, while progress in the stablecoin regulatory framework bill will provide clearer operational rules for the market. These could be key milestones for a bullish crypto market, and entering positions around December or January at low points is advisable!
These legislative developments will lay a more solid legal foundation for the industry’s growth.
**Market Structure Analysis:**
Currently, Bitcoin’s main support levels are around $63,546 (the 200-day moving average) and $64,337 (short-term holder cost basis). There is significant selling pressure around the $75,000 level (as noted in our previous article; at the high point, there will be little buying interest, and selling pressure will be substantial if there is no profit). In contrast, the $70,000–$73,000 range shows notable buying support. This price structure suggests that while short-term fluctuations may occur, the overall market remains strong.
It is also essential to note that post-election, the market may exhibit a “sell-off followed by rebound” volatility pattern. Prices may pull back to the $65,000–$67,000 range in the short term before rising above $70,000 on favorable news. It is crucial to remain vigilant regarding market fluctuations, control positions wisely, and pay special attention to buying and selling strategies; while buying at the high point may not incur losses, the retracement period could be lengthy. At current prices, it is not advisable to enter the market again, as each cent Bitcoin gains now represents a historical high!
**Conclusion:**
In summary, the current cryptocurrency market is at a pivotal historical juncture. Multiple favorable factors—improved political environment, increased institutional investment, technical breakthroughs, and policy expectations—are creating new growth opportunities for the market. However, investors must closely monitor the specific implementation of regulatory policies and remain vigilant about potential market volatility risks. While seizing opportunities, a relatively balanced investment strategy is recommended to avoid the risks associated with excessive chasing of high prices.
