Bitget Research: Policy and Regulatory Catalysts Propel Crypto Market into a New Turning Point

Yesterday, the crypto market saw its strongest single-day performance of the year. Bitcoin hit a high of $70,000, its first time in two months; Ethereum rose to $2,300; Solana gained approximately 12%. Bitget Research analysis indicates that the core drivers of this rally stem from dual breakthroughs in policy and regulation: the White House convened talks with the President, crypto industry executives, and heads of the SEC and CFTC, marking digital assets' formal entry into national financial strategy discussions; the SEC also proposed "Regulation Crypto Assets" on the same day, establishing a clear pathway for token financing and introducing an "investment contract safe harbor" mechanism for the first time, which is expected to foster the emergence of more U.S.-native projects. From a market structure perspective, the market was in a net short position when the first two catalysts landed, and the price uptick triggered cascading liquidations, with 126,000 traders and a total of $1.92 billion in positions liquidated across all exchanges that day, marking the largest short-squeeze liquidation day in history and further amplifying gains. Bitget Research believes that, given a significant portion of this rally stems from concentrated short liquidations rather than spot buying, there is short-term pullback pressure on the market. However, from a medium-to-long-term view, the crypto market is entering a dual turning point of policy and liquidity, where clearer regulatory pathways, coupled with improved long-end liquidity conditions, collectively form the foundation for a new cycle.