Bitcoin once again hit a new high of $99,000, and its market share in the crypto market has also climbed to a three-year high. The pro-crypto wing of Trump’s team has always regarded Bitcoin as the core of the crypto strategy, and as the compliance environment becomes clearer, more and more compliant investment channels are gaining attention and popularity.
Bitcoin attracts money strongly, while altcoins perform poorly
Bitcoin continues to attract internal and external capital flows, and its market share has reached 61.6%, breaking the record in recent years. But at the same time, the overall performance of altcoins is not satisfactory. Among the top ten crypto assets, only BTC, SOL and XRP have achieved growth. Since the mainstream funds for compliant investments are mostly concentrated in Bitcoin and related assets, the liquidity of altcoins has been significantly affected by the diversion.
In addition, the exchange rate of Ethereum (ETH) against Bitcoin fell to 0.03217, a new low in nearly three years. This sluggish performance has also triggered doubts in the Chinese community about the Ethereum project and its model. As of press time, Ethereum is quoted at $3,125, and the price has always hovered around $3,000, lacking a clear breakthrough for a long time.
The market’s polarization trend is particularly evident in the MEME sector. Taking the main MEME tokens on Solana as an example, the daily decline is generally around 5%-10%, which also reflects the trend that funds are gradually flowing back to mainstream assets such as Bitcoin.
A large amount of funds poured in from the OTC market, driving the steady rise in Bitcoin prices. Eric Balchunas, senior ETF analyst at Bloomberg, mentioned that the trading volume of stocks related to the Bitcoin ecosystem has reached $50 billion, equivalent to the average daily trading volume of the entire UK stock market.
Of this, MicroStrategy (MSTR) contributed $32 billion, while MSTR’s two leveraged ETFs, MSTU and MSTX, totaled $6 billion, with trading volume exceeding the total of all spot Bitcoin ETFs.
Compared with spot ETFs, investors seem to prefer trading through these related companies. MSTR's stock price also hit an all-time high of US$504.83, with a market value of over US$100 billion. Its single-day trading volume even exceeded Tesla and was second only to Nvidia.
As a representative of crypto assets in the U.S. stock market, MicroStrategy (MSTR) has been making continuous moves recently, including plans to sell $2.6 billion worth of notes and use the proceeds to buy Bitcoin. So far, MicroStrategy's Bitcoin holdings have made a floating profit of more than $15.5 billion.
In terms of ETFs, net inflows have exceeded $9 billion in the past two months, showing traders' confidence in Bitcoin prices, especially after Trump's election, the market's confidence in crypto assets has been further strengthened.
Can the bull market continue?
Ki Young Ju, founder of CryptoQuant, recently analyzed the trend of Bitcoin and believes that there is still a lot of room for the bull market. He mentioned that the bull-bear index has turned positive recently, and the whales on the chain are also accumulating, which is very similar to the situation in 2020. He also pointed out that the future halving cycle coupled with the influx of institutional funds will bring sufficient liquidity to the market, thereby supporting the subsequent upward trend.
Crypto compliance sentiment still awaits implementation
This week, traders have focused on Trump's appointments of Treasury Secretary and Chairman of the U.S. Securities and Exchange Commission (SEC). According to reports, the Trump team is considering the creation of the first crypto-related position, which undoubtedly provides more motivation for institutions to enter the crypto market.
Currently, one of the hot candidates for SEC Chairman is Goody Guillén, who has worked in blockchain legal affairs. The Trump team hopes to find a leader who understands the crypto industry and is cautious about whether digital assets are subject to securities laws until Congress introduces clearer legislation. In addition, Trump also nominated Howard Lutnick, CEO of Cantor Fitzgerald, as the new Secretary of Commerce. The company recently announced a Bitcoin leveraged financing business worth up to $2 billion, which shows that the Trump team's attitude in the crypto field is shifting towards a more positive integration.
However, despite the constant calls for digital asset regulation in the U.S. Congress, the progress of the policy framework that can be truly implemented is still slow. In May of this year, the U.S. House of Representatives passed the (21st Century Financial Innovation and Technology Act) (FIT21), which aims to provide federal guidelines for the digital asset industry, but this bill still faces many challenges and requires further coordination between the Senate and the executive branch. With the Trump administration taking office, we may see the final implementation of crypto compliance policies, bringing more certainty to the market.
