Recently, the virtual currency market has become active again. Last night, the market suddenly surged, and Bitcoin briefly soared to the $96,500 level this morning. Ethereum was also on the move, rising nearly 8% in one go, reaching around $3,380. Other cryptocurrencies followed suit, and the entire market showed a long-lost enthusiasm.

What exactly is going on? Industry insiders have summarized several key factors. First is the positive signals from regulators. Recently, SEC Chairman Paul Atkins stated on social media that this week is crucial for the cryptocurrency industry, as Congress is about to push forward with upgrades to the 21st-century financial markets, which opens up many possibilities. Second, institutional demand has been reactivated, with institutional participation clearly increasing during this rebound. The third variable is the weakness of the US dollar—recently, the dollar has been hesitant, relatively weakening the suppression of digital assets.

As the market erupts, risks are also accumulating. In the past 24 hours, 121,715 people worldwide have been forcibly liquidated, with a total liquidation amount of $685 million, indicating how fierce the leverage trading has become. Besides the economic factors, Ryan Rasmussen, head of Bitwise Research, pointed out that the instability of the global political and economic situation is also contributing—such as Iran's currency devaluation and turmoil in Venezuela, which are shifting demand toward digital assets. Additionally, the investigation of Federal Reserve Chairman Powell by the U.S. Department of Justice has become an uncertain factor affecting market sentiment, with investors remaining cautious about policy changes.

There is also a deeper threat being discussed—the recent decoupling of Bitcoin from the global M2 supply for the first time. The underlying reason may involve quantum computing risks. Theoretically, quantum computers have the ability to crack encryption, which poses a particular threat to early blockchain wallets. Although this is a long-term concern, it also serves as a reminder for market participants to pay attention to the risks associated with technological evolution.