The results of the U.S. election may bring new opportunities for the Crypto Assets market

With the results of the US election announced, the global Crypto Assets market is full of expectations for the future policy environment. The market generally believes that the ascension of the new government will bring new opportunities and development prospects for the encryption industry, which could not only reduce regulatory pressure but also provide a more open policy space. The new government's pro-business stance, combined with its team's free market thinking, has led market investors and industry leaders to optimistically predict that the US's attitude toward Crypto Assets regulation will gradually shift, injecting new momentum into the industry. Under such expectations, the price of Bitcoin has rapidly risen to $76,400, setting a new historical high.

So, how does the rise of the new government actually affect the Crypto Assets market? Next, we will analyze from multiple perspectives including regulatory trends, the future of Bitcoin, institutional investor expectations, market volatility, and the promotion of DeFi, and gather the views of various professionals on this.

The Shift in Regulatory Environment and New Policy Directions

In terms of policy, the new government's rise to power has rekindled hope in the Crypto Assets market.

A report from a certain analysis team points out that the new government's assumption of office will help accelerate the turnover of senior personnel at the U.S. Securities and Exchange Commission (SEC), possibly bringing in a "crypto-friendly" new chairman. The new government's support for decentralized finance (DeFi) and stablecoins may promote the passage of regulations such as the "Digital Commodity Consumer Protection Act". The potential reforms of these policies will help legitimize the crypto market and provide clearer policy 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's Crypto Assets cases will undergo a "significant change" and believes that the new government will re-examine existing Crypto Assets cases, distinguishing between clear scams and frauds and normal operations.

The CEO of a trading platform expressed optimism about this prospect, believing that the new government-controlled Congress is "the most supportive Congress for Crypto Assets in history," and pointed out that this is a huge benefit for the industry's compliance and security. The new government's policy reforms not only inject confidence into the market but also accelerate the development of stablecoin issuers, speeding up their legalization process in the United States.

In addition, sources have revealed that the "Financial Innovation and Technology Act of the 21st Century" (FIT21) passed by the House earlier this year may be stalled due to election results. FIT21 aims to create a federal framework for the regulation of Crypto Assets and delineate the jurisdictional boundaries between the CFTC and SEC. However, as support from Crypto Assets lobbying groups shifts towards more favorable legislation, the advancement of FIT21 may be put on hold. This indicates that the new regulatory environment may become more lenient, providing a good development space for the market.

Bitcoin Reserves and Market Outlook

The positive impact of the new government coming to power was quickly reflected in the price of Bitcoin. During the election ballot counting, Bitcoin once broke through $75,000, setting a new historical high.

A certain analytical institution predicts that the price of Bitcoin may further rise to $90,000 in the future, with expectations of reaching $200,000 by 2025. This expectation has been widely recognized by market analysts, especially for institutional investors, as the value attribute of Bitcoin as "digital gold" is increasingly being valued.

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

Market Volatility and Trading Opportunities

Analysts hold a positive view on the market's volatility.

The portfolio manager of an investment institution believes that the new government's rise to power will bring short-term market volatility, which presents new opportunities for traders. These fluctuations mainly stem from changes in market expectations regarding whether the new government will fulfill its crypto-friendly commitments. Over the past four years, the crypto market has faced numerous challenges due to regulatory pressures, leading to a gradual erosion of external investors' confidence in the crypto industry. As policy trends become clearer, market volatility may drive investors to reassess their investment strategies in the crypto market, creating new trading opportunities.

Attitude of Institutional Investors and Market Inflow

With the new government policies shifting towards a more favorable stance on the Crypto Assets market, institutional investors' interest in the market is also increasing.

A director of a research institution stated that the new government's policy shift will bring a new wave 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 significant potential for growth. Particularly with the improvement of the regulatory environment and policy support, the interest of institutional investors will further increase. Market participants generally expect that with the legalization of the crypto market, digital assets will be more widely accepted in the coming years and further integrated into the traditional financial system.

An analyst from a trading platform expects that with the new government coming to power, the crypto market will迎来 "a new wave of hope". As the industry anticipates that federal agencies will take a less hostile stance towards crypto assets, this trend is expected to facilitate more capital flowing into the Web3 space. The analyst stated: "We expect that in the short term, a significant amount of capital will be released for the encryption field."

The Rise of the DeFi Sector and Market Vitality

The new government's rise to power may also promote the native sector of the crypto industry, especially the rise of DeFi. The reason is that before the election, the family of the new government issued a DeFi project, which is currently in the presale phase, indicating their emphasis on the native sector of crypto. Although the election results did not improve the presale situation of the project, it still shows their importance on the DeFi sector.

A founder of a certain DeFi project stated on social media that the new government's rise to power will promote a "real sustainable revival" of DeFi, significantly increasing the likelihood of a tenfold growth in the number of users in the DeFi space. He pointed out that DeFi stands to benefit more from the reduction of regulatory uncertainty in the U.S. compared to other areas of the crypto industry, as its decentralized nature aligns better with the free market principles supported by the new government.