The crypto market is experiencing high-level fluctuations. The ALPACA incident reveals speculative risks. The Bitcoin reserve bill in Arizona attracts follow.

This week, the crypto market is showing a high-level volatility, with Bitcoin's price hovering between 93500 and 95500 USD. Some small market capitalization tokens have performed well, especially those related to the SUI ecosystem, Virtual ecosystem, and AI-related tokens, which have seen significant rises. The overall market is still waiting for key economic data this week, such as unemployment rates and non-farm employment data, to determine the future direction.

Recently, the crypto market has shown a complex situation, with regulation and market manipulation intertwined. The ALPACA incident revealed that some speculators manipulate low market capitalization token contracts, using short squeezes and funding rate harvesting to exploit retail investors, highlighting the risks of market speculation. Meanwhile, the U.S. policy stance on crypto assets is becoming more positive, with Arizona's Bitcoin Reserve Bill marking an acceleration in the mainstreaming of cryptocurrencies.

The ALPACA incident reflects several characteristics of the current market:

1. The dealer has a clear operating strategy, making profits by controlling the market to raise contract prices for delivery, luring shorts before pushing prices higher to complete the harvest, and after delivery, crashing the market to liquidate and capture the remaining value.

2. The Air Force becomes fuel, providing additional capital to bulls through funding rates to drive prices up. It is advised that investors do not go against the market makers and should follow the trend.

3. The exchange has shortened the funding rate settlement period to 1 hour, increasing the pressure on shorts and accelerating the short squeeze process.

4. You can pay attention to low market capitalization tokens with high open interest (OI) and significant fluctuations in funding rates, as there may be arbitrage opportunities. However, be aware that the pace of operations is accelerating, and risks are increasing.

In terms of policy regulation:

1. The SEC has postponed the approval decisions for several spot cryptocurrency ETFs, but the market is optimistic about the approval expectations for ETFs like LTC and SOL.

2. Arizona passes a Bitcoin reserve bill, allowing state finances and pension systems to invest in Bitcoin, reflecting that cryptocurrency is stepping into mainstream finance.

3. Although there is still a possibility that the bill may be vetoed by the governor, several states in the U.S. have proposed similar bills, indicating that the trend of Bitcoin reserve is spreading.

Overall, the current market presents both opportunities and risks, and investors should remain vigilant, pay attention to policy trends, and seize potential opportunities.