#我在Gate广场过新年 On February 14th, during the Asia-Pacific morning session, Bitcoin broke through $69,000, and Ethereum surpassed $2,050, with 24-hour gains both very impressive. The entire cryptocurrency market experienced a collective surge. So, what exactly happened?

On Friday, U.S. Treasury Secretary Janet Yellen stated that Congress should pass a bill this spring to establish federal regulatory rules for digital assets and submit it to President Trump for signature into law.
In an interview, Yellen was asked about the progress of the bill amid the recent sharp decline in the cryptocurrency industry. She said that the bill, called the Digital Asset Market Clarity Act, can "greatly reassure market sentiment" during times of intense market volatility.
She added that crypto companies have tried to block the legislation, but currently a bipartisan group of lawmakers hopes to push the bill through. Yellen warned that if Democrats take control of the House of Representatives in November, this bipartisan coalition could fall apart.
Yellen's comments have a significant impact on the virtual currency market. Previously, during a heated hearing before the U.S. House Financial Services Committee, Yellen was asked whether the U.S. Treasury has the authority to buy Bitcoin or other cryptocurrencies. She clearly stated, "I do not have the authority to do so. As Chair of the Financial Stability Oversight Council (FSOC), I also do not have that power." Subsequently, the virtual currency market experienced a sharp decline, with Bitcoin dropping to $60,000 at one point.

So, how will the virtual currency market evolve next?
As Bitcoin continues to adjust, Bit CEO Grescy Chen believes that the recent weakness is unrelated to deteriorating fundamentals and is more due to the structural liquidity shock experienced by the crypto market on October 10 last year.
She emphasized that interest rates are declining, the new U.S. administration is friendly toward cryptocurrencies, and blockchain technology is widely applied to real assets like stablecoins globally. Large asset management firms are also actively embracing this sector, with more companies like BlackRock increasingly incorporating cryptocurrencies into their investment portfolios and business strategies.
October 10 last year marked a turning point for the crypto market, when a major liquidity event triggered a sharp contraction in trading activity. Over the past four months, due to low liquidity, Bitcoin's price has likely undergone structural changes. Although conditions across the industry are "quite severe," Bitcoin may still present opportunities for investors with a long-term perspective.
However, Ari Paul, founder of BlockTower, believes that the crypto market is at a critical crossroads, facing two potential outcomes. Paul pointed out that one possibility is that the crypto market has already peaked, especially for this generation of digital assets. Cryptocurrencies benefit from increased mainstream recognition, political support, and relaxed regulation. However, real-world adoption is relatively slow, with mixed results from El Salvador's Bitcoin experiment and various corporate trials. This suggests that further declines are still possible, especially in the event of large-scale liquidations. Paul also expressed concerns about Bitcoin's long-term viability.