The cryptocurrency market is showing simultaneous short-term price declines and mid-to-long-term upward momentum. Over the past 90 days, the market capitalization of the US strategic crypto reserve-related sector rose 23.41%, the Layer-1 blockchain sector rose 23.96%, and the Bitcoin ecosystem rose 23.63%. As of November 1, the market's main investment themes are the US government's digital asset policy and institutional investors' participation in blockchain infrastructure.

■ US Strategic Crypto Reserve Sector Up 23.41% Over 90 Days

The US strategic crypto reserve-related sector includes Bitcoin, Ethereum, Ripple, and other cryptocurrencies drawing attention in connection with the US government's digital asset reserve policy.

In March 2025, the United States announced an executive order establishing a strategic Bitcoin reserve and a US digital asset stockpile. The policy designates Bitcoin as a separate strategic reserve asset and manages other digital assets under a separate stockpile system. The Bitcoin reserve may utilize assets secured by the federal government through forfeiture procedures.

In contrast, other cryptocurrencies such as Ethereum, Solana, Ripple, and Cardano (ADA) do not have a structure guaranteeing new government purchases in the same manner as Bitcoin. Nevertheless, market interest continues because the US government has explicitly designated digital assets as a matter of national-level management.

In particular, the US government's Bitcoin holdings of roughly 200,000 BTC are a focal point for the market. However, actual holdings may vary depending on asset transfers and management status, and it cannot be assumed that all of those holdings will be permanently removed from market circulation. The strategic reserve policy's impact on the Bitcoin market's supply structure may also vary depending on actual holdings, disposal restrictions, and future acquisition methods.

■ Layer-1 Sector Up 23.96%... LayerZero's 'Zero' Draws Attention

The Layer-1 blockchain market has also shown a mid-to-long-term uptrend. The sector's market capitalization growth over the past 90 days was 23.96%, 0.55 percentage points higher than the strategic reserve-related sector (23.41%).

Layer-1 refers to the base blockchain networks where transaction validation, settlement, and smart contract execution take place, with Ethereum and Solana being representative examples. Development efforts in the sector continue to focus on improving transaction processing performance, scalability, and usability for institutional investors.

Notably, 'Zero,' a new Layer-1 blockchain announced by LayerZero Labs, is attracting attention. Zero was introduced as a project designed with institutional investors and financial market participants in mind; the related plans have mentioned the participation of Citadel and Ark Invest, with a target launch in the fall of 2026. However, whether the project will actually launch and the specific roles of participating institutions must be confirmed through official announcements.

If institutional investors expand their use of blockchain, the importance of infrastructure supporting transaction speed, stability, and large-scale financial transactions could grow. However, increased investment in blockchain technology does not necessarily translate into higher prices for related cryptocurrencies; individual asset price movements may vary depending on network usage, fee revenue, and token supply structures.

■ Bitcoin Ecosystem Up 23.63%... Mid-to-Long-Term Trend Held Even After Hack

The Bitcoin ecosystem's market capitalization also rose 23.63% over the past 90 days. Bitcoin is being discussed for use beyond its traditional role as a store of value, including as collateral and a base asset for blockchain-based financial services, with Bitcoin-related Layer-2 technology and financial protocols tied to this trend.

Notably, the Bitcoin ecosystem's mid-to-long-term market capitalization growth has held up even after the large-scale cryptocurrency exchange hacking incident. However, the 90-day market capitalization increase and post-hack price movements cover different time periods. Therefore, the mid-to-long-term growth rate alone is insufficient to confirm the market's resilience to the hacking shock.

■ Future Variables: Policy Execution, Institutional Inflows, Bitcoin Spot ETFs

The market is currently focused on three concurrent trends: the US digital asset policy, institutional investors' participation in blockchain infrastructure, and the expansion of Bitcoin-based financial services. Over the past 90 days, the Layer-1 sector recorded the highest growth at 23.96%, followed by the Bitcoin ecosystem (23.63%) and the strategic reserve sector (23.41%).

Going forward, the execution of the US digital asset policy and whether institutional capital actually flows in remain key variables. In particular, whether US Bitcoin spot exchange-traded funds (ETFs) turn to net inflows is an indicator for gauging changes in institutional demand. Bitcoin spot ETF fund flows over the next 48 hours are also of interest, and must be checked with attention to the distinction between ETF trading days and fund aggregation timing.

The cryptocurrency market currently faces short-term weakening investor sentiment while mid-to-long-term factors—US government digital asset policy and blockchain infrastructure development—operate simultaneously. For major cryptocurrencies such as Bitcoin, Ethereum, and Ripple, actual policy execution and institutional capital flows, rather than policy announcements themselves, are likely to serve as key criteria for judging future movements.

[This article is intended to convey policy and industry trends in the cryptocurrency market and does not recommend buying or selling any specific virtual asset. Market capitalization growth rates by sector may vary depending on the data provider and constituent assets. Policy execution status and project launch schedules should be confirmed through official announcements. This article was written with partial AI assistance.]