According to Woofun AI, after the Democratic Party won control of both chambers of the U.S. Congress, the cryptocurrency market staged a notable rebound, with Bitcoin successfully holding the $80,000 mark.
During early Asian trading hours, Bitcoin was changing hands at around $80,484, posting a 5.7% gain over 24 hours. This move reversed the brief slump seen right after the election results were announced, after Bitcoin had earlier dipped to around $75,700 on Wednesday morning before buying interest quickly stepped in and pushed prices back up. Data compiled by Woofun AI shows that during this rebound, major assets performed divergently, with Zcash leading the pack with an 11.7% gain, rising to about $1,318, while its trading volume the previous day reached as high as $1.2 billion. By comparison, ETH rose 8% to about $2,425, Solana gained 5.9% to $96, XRP climbed 4.7% to $1.31, and BNB advanced 4.2% to around $715. Zcash's strong performance is closely tied to its network features and an upcoming technical upgrade. The network allows users to conceal information such as the sender, receiver, and payment amount, and the NU7 upgrade expected around Friday will shorten the interval between transaction batches from 75 seconds to 25 seconds. If exchanges maintain their current confirmation requirements, transaction wait times will be sharply compressed from nearly four minutes to about 75 seconds, significantly improving the efficiency of fund arrival.
Meanwhile, at the macro level, as investors expect the Democratic Party to increase pressure to end the Middle East conflict, Brent crude oil prices fell more than 8% on Wednesday. Lower energy costs help ease inflation and corporate operating costs, which in turn drove the S&P 500 up 1.6% and weakened the U.S. dollar. BTSE Chief Operating Officer Jeff Mei pointed out that the market believes the Iran conflict and high oil prices are more likely to end, and Bitcoin therefore rebounded in tandem with the stock market. However, Asian markets reacted mixedly. Affected by concerns over data center regulation, Samsung Electronics and SK Hynix (SKHY.US) both fell more than 6%, while Tencent and Alibaba (BABA.US) both rose more than 5%. Despite the improvement in market sentiment, the regulatory outlook remains uncertain. Jeff Mei warned that the Clarity Act in its current form is very likely unable to pass, and the possibility of a rate cut remains very small. The Zcash community also issued a policy memo, reminding that under the incoming Congress leadership, financial privacy may face stricter scrutiny, and the development of private payment methods needs to be advanced by safeguarding consumer safety, maintaining corporate confidentiality, and respecting civil liberties. The new Democratic majority will formally take office on January 3, and its legislative moves and whether it launches cryptocurrency-related investigations will become key variables for the market going forward.
Comments