The period of compression that precedes an explosion can be compared to a moment of energy accumulation or tension, where there is a stabilization or limitation of movements before a major change. This phenomenon is quite common in financial markets, including the cryptocurrency market, and can be associated with moments of political uncertainty.

During the counting of votes in a presidential election (especially in the United States), markets, including cryptocurrency markets, often experience volatility. This volatility is caused by the uncertainty of the outcome, with investors reacting in real time to projections and speculation.

As the date of the inauguration of a Republican president approaches, the market tends to enter a state of compression, characterized by more restricted price movements and a decrease in volatility. This occurs because investors begin to wait for more concrete actions from the new government, such as economic, fiscal and regulatory policies that may impact the cryptocurrency market.

Period of consolidation with price variation, investors in "wait and see" mode, anticipating possible favorable or restrictive policies for the crypto sector.

The pre-inauguration period of cryptocurrency market compression can be compared to the phase in which pressure builds up within a system ready to release energy, as in the case of a physical explosion. Much like the compression of gases before a detonation, the limited price fluctuation reflects stored potential energy, ready to manifest itself in a post-inauguration burst of volatility, depending on announced policies or confirmed expectations.

After the inauguration, if the Republican government implements crypto-friendly measures, such as less regulation and incentives for innovation, we could expect a bullish market explosion. Conversely, actions against it could trigger a sharp decline.