The results of the US election bring new opportunities to the crypto market

The recent results of the U.S. elections were unexpected, sparking eager anticipation in the global crypto market regarding the future policy environment. The market generally believes that the new government's rise will bring new development opportunities for the encryption industry, potentially reducing regulatory pressure and providing a more open policy space. The new government's pro-business stance and free market thinking have led investors and industry leaders to have optimistic expectations about the shift in the U.S. crypto regulatory attitude, which will inject new momentum into the industry. Driven by such expectations, the price of Bitcoin quickly surged to a historic high of $76,400.

This article will analyze the impact of the new government on the crypto market from multiple angles, including regulatory trends, the outlook for Bitcoin, institutional investor expectations, market volatility, and the development of DeFi, while summarizing the views of industry professionals.

Changes in the Regulatory Environment and New Policy Directions

The new government's assumption of office has rekindled hope in the crypto market.

A report from a certain analysis team indicates that the new government will accelerate the replacement of senior personnel at the U.S. Securities and Exchange Commission (SEC), potentially bringing in a new chairman who is friendly to encryption. The new government's support for decentralized finance (DeFi), stablecoins, and other areas may promote the passage of related legislation. These policy reforms will help legitimize the crypto market and provide clearer guidance for the industry.

The chief legal officer of a trading platform expects that under the leadership of the new chairman, the number of SEC cases related to encryption will undergo a "significant change". He believes the new administration will re-examine existing crypto cases, distinguishing obvious scams and fraud from other cases.

The CEO of a certain trading platform expressed optimism, believing that the newly government-controlled Congress is "the most supportive Congress for encryption in history," which is a great benefit for the industry's compliance and security. The new government's policy reforms not only inject confidence into the crypto market but also accelerate the legalization process for stablecoin issuers in the United States.

Additionally, there are reports that the previously passed "Financial Innovation and Technology Act of the 21st Century" (FIT21) may be shelved due to the new government coming into power. Supporters are turning to more favorable legislation, indicating that the new regulatory environment may be more lenient, providing good development space for the market.

Bitcoin Reserves and Market Prospects

The positive impact of the newly elected government quickly reflected in the price of Bitcoin. During the voting period, Bitcoin once broke through $75,000, setting a new historical high.

A certain analysis agency predicts that the price of Bitcoin may further rise to $90,000 in the future, with the potential to reach $200,000 by 2025. This expectation is widely recognized by market analysts, especially for institutional investors, as the value attributes of Bitcoin as "digital gold" are increasingly being emphasized.

An industry insider pointed out that the election of the new government could bring a "180-degree turnaround" for the Web3 industry, and believes that Bitcoin's market performance has not fully reflected the far-reaching impacts of this policy change. Institutional allocation to Bitcoin will significantly increase, making it one of the mainstream financial assets, and this trend may accelerate in the coming years.

Market Volatility and Trading Opportunities

Analysts hold a positive view on the volatility of the market.

A portfolio manager at an investment firm believes that the new government's rise to power will bring short-term market fluctuations, which present new opportunities for traders. These fluctuations mainly stem from changes in market expectations regarding whether the new government will fulfill its encryption-friendly commitments. As policy inclinations gradually become clearer, market volatility may prompt investors to reassess their investment strategies in the crypto market, leading to new trading opportunities.

Attitudes of Institutional Investors and Market Inflows

As the new government policy shifts to be more friendly towards the crypto market, institutional investors' interest in this market is also increasing.

A director of a research institution stated that the policy shift of the new government will bring a new round of capital inflow to digital assets such as Bitcoin, especially among institutional investors. Although the crypto market has attracted about $29 billion in inflows this year, he believes there is still enormous potential for growth. With the improving regulatory environment and policy support, the interest of institutional investors will further increase.

An analyst from a trading platform predicts that after the new government takes office, the crypto market will welcome a "new wave of hope." With the industry expecting federal agencies to adopt a more favorable attitude towards cryptocurrencies, this trend is expected to encourage more capital inflow into the Web3 sector. The analyst stated: "We expect that in the short term, a large amount of capital will be released for the encryption sector."

The Rise of the DeFi Sector and Market Vitality

The new government's rise to power may also promote the native sector of the encryption industry, especially the rise of DeFi. The new government issued a DeFi project before the election, indicating its emphasis on the native sector of encryption. Although the new government's rise did not improve the presale situation of the project, it demonstrated attention to the DeFi sector.

A well-known DeFi project founder expressed on social media that the new government's coming to power will promote a "real sustained revival" of DeFi, significantly increasing the possibility of a tenfold growth in the number of users in the DeFi space. He pointed out that DeFi is more capable of benefiting from the reduction of regulatory uncertainty in the U.S. compared to other areas of the encryption industry, as its decentralized nature aligns more closely with the free market principles supported by the new government.