How much impact will the upcoming election have on the market? If Trump is elected, his policies might be beneficial for cryptocurrencies; he has previously claimed that he would consider Bitcoin as a national reserve currency, which could potentially change the nature of crypto. Buffett has recently been selling off U.S. stocks aggressively; why is that? Because once the capital gains tax is implemented, the wealthy will have to sell assets to pay taxes, which could trigger a wave of selling.

The direction post-election will depend on the economic situation. Generally, the three months after the election are critical; if the economy is stable and the Federal Reserve continues with monetary easing, the risk markets might perform well; if there's an economic recession, we might see a 'final drop.' From a trend perspective, the Federal Reserve's rate-cutting cycle typically lasts about 16 to 18 months, and by the third or fourth quarter of 2026, we could enter a low-interest-rate period.

If there is an economic recession, the Federal Reserve may use QE to stimulate economic recovery and expand its balance sheet to increase liquidity; if the economy achieves a soft landing or does not land at all, QE may not occur, but the possibility of balance sheet expansion remains. The mid-term elections in November 2026 could benefit the risk markets, and this mid-term election may mark the end of the shift from tightening to easing U.S. monetary policy.

Regarding the current market situation, here are a few suggestions: First, Bitcoin has the potential to reach new highs; it is still within the expected range, so we need to wait; second, most VC altcoins will need Bitcoin to break new highs before gaining momentum, with performance showing sustained growth; third, before Bitcoin reaches new highs, altcoins may be drained, experiencing fluctuations, but some may have localized momentum, and rotation could return; fourth, don't blindly follow trends and avoid crowded areas.