**1. Market Overview: Total market capitalization exceeds 4 trillion USD, BTC/ETH lead the rise**

1. **Cryptocurrency total market capitalization hits a new high**
Driven by the signing of the U.S. GENIUS Act and the accelerated inflow of institutional funds, the total market capitalization of global cryptocurrencies has surpassed **$4 trillion** for the first time, with a 24-hour trading volume reaching **$260.2 billion**.
- **Bitcoin (BTC)**: After breaking through $120,000 during the day, it has slightly retraced, currently quoted at **$118,004** (24-hour drop of 1.13%), with the technical perspective showing high-level fluctuations, support levels at $116,000-$115,500, and resistance at $120,500.
- **Ethereum (ETH)**: Strongly leading the rise to **above $3600** (7-day increase of 24%), with the main upward target pointing to **$4000**, and the 30-minute Bollinger Bands support becoming a key short-term factor.
2. **Altcoin Rotation Accelerates**
Mainstream altcoins such as SOL, XRP, and DOGE have risen by over 10% in the last 24 hours, with a clear trend of funds migrating from BTC to high-elasticity assets.
2. Policy Dividend: The United States "Crypto Week" Reshapes the Regulatory Framework **
1. **Three Major Bills Passed**
- **"Genius Act"**: Trump officially signed, establishing a federal regulatory framework for stablecoins, promoting the compliance of USDT, USDC, etc. (current total market capitalization of stablecoins **$250 billion**).
- **The CLARITY Act**: Clarifies the legal attributes of digital assets, eliminates ambiguity in the classification of securities/commodities, and a Senate vote will take place next week.
- **Anti-CBDC Bill**: Block the risk of central bank digital currency replacing private domain crypto assets, consolidating the existing market structure.
**Impact**: It is expected to attract **50 billion USD** of traditional institutional funds this year, which may long-term drive the allocation of 401(k) pension plans to crypto assets (potential incremental **80 billion USD**).
2. **Global Regulatory Coordination Accelerates**
- The EU's MiCA is fully implemented, forcing stablecoin issuers to comply;
- Hong Kong and Singapore are competing for cryptocurrency companies by opening up licenses.
3. Potential sectors: Funds focus on three major tracks**
Based on capital flow and technical structure, the following sectors have excess return potential:
1. **Ethereum Ecosystem**
- **Staking track**: LDO (monthly rise of 20%), Rocket Pool, benefiting from the increase in ETH staking to **35.4 million** (accounting for 29.3% of circulation).
- **L2 Scaling**: OP, ARB, Base, as the mainnet Gas fees rise above 30 Gwei, the cost advantage becomes prominent.
2. **High Beta Asset**
- **Public Chain**: SOL (daily average transactions of 99 million), SUI (American concept);
- **Meme Coins**: PEPE, BONK, NEIRO (high volatility suitable for aggressive strategies).
3. **Integration of Traditional Finance**
- **RWA (Real World Assets)**: On-chain value reaches **24.4 billion USD**, with private credit accounting for 58% (e.g., Ondo Finance);
- **Tokenized Stocks**: Robinhood and xStocks offer 24/7 trading.