BTC stands firm at $80,000, Zcash surges 12% due to NU7 upgrade

According to Woofun AI, after the Democratic Party gained control of both houses of the US Congress, the cryptocurrency market experienced a significant rebound, and the Bitcoin price successfully held the $80,000 mark. Bitcoin traded around $80,484 in early trading in the Asian market, recording a 5.7% increase in 24 hours.

This trend reversed a brief slump in the early days when the election results were announced. Bitcoin once fell to around $75,700 on Wednesday morning, then buying quickly intervened to push the price back up.

According to data compiled by Woofun AI, the performance of various mainstream assets was divided in this rebound. Among them, Zcash ranked in the lead with an increase of 11.7%. The price rose to about $1,318, and the previous day's trading volume reached 1.2 billion US dollars. In contrast, ETH rose 8% to around $2,425, Solana 5.9% to $96, XRP 4.7% to $1.31, and BNB 4.2% to around $715. Zcash's strong performance is closely linked to the characteristics of its network and upcoming technology upgrades. The network allows users to hide information such as the sender, receiver, and payment amount, and the upcoming NU7 upgrade around Friday will shorten the time interval between transaction batches from 75 seconds to 25 seconds. If the exchange maintains the existing confirmation requirements, the transaction waiting time will be drastically reduced from nearly four minutes to about 75 seconds, significantly improving the efficiency of fund delivery.

Meanwhile, at the macro level, as investors expected the Democratic Party to increase pressure to end the Middle East conflict, the price of Brent crude oil fell by more than 8% on Wednesday. Falling energy costs helped ease inflation and business operating costs, which in turn led to a 1.6% rise in the S&P 500 index and a weakening of the dollar. BTSE chief operating officer Jeff May pointed out that the market believes that the Iran conflict and high oil prices are more likely to end, so Bitcoin rebounded in sync with the stock market.

However, the reaction of the Asian market was mixed. Affected by concerns about data center regulations, Samsung Electronics and SK Hynix (SKHY.US) both fell by more than 6%, while Tencent and Alibaba (BABA.US) both rose by more than 5%.

Despite a recovery in market sentiment, the regulatory outlook remains uncertain. Jeff May warned that the “Clarity Act” in its current form is unlikely to pass, and that interest rate cuts are still very unlikely. The Zcash community also issued a policy memorandum reminding that under the incoming National Assembly, financial privacy may face stricter scrutiny, and that the development of private payment methods needs to be promoted by safeguarding consumer safety, maintaining corporate confidentiality, and respecting civil liberties. The new Democratic majority will officially take office on January 3, and its legislative trends and whether to conduct crypto-related investigations will be key variables in the subsequent market.