Policy fluctuations trigger market Fluctuation, the Crypto Assets industry continues to develop

Recently, the global financial markets have shown a unique fluctuation pattern influenced by policy reversals. Wall Street even coined the term "TACO trading" to describe the phenomenon where the market declines after certain policy announcements, followed by a rebound due to policy easing. This pattern played out again last week, leading to a drop followed by a rise in the market. Analysts generally believe that this threat is difficult to sustain due to its significant damage to the economy. On Tuesday, the U.S. stock market reacted positively to the latest news, with all three major indices rising.

The cryptocurrency sector is also deeply influenced by political games. The Economist points out that cryptocurrencies have deviated from technological idealism to become political tools. In contrast, some analysts believe that Hong Kong, through policies such as the Stablecoin Regulation, has found a balance between innovation and regulation, establishing itself as a rule-maker in the digital finance era.

The Bitcoin market shows mature characteristics driven by institutions. Despite the price consolidating in the range of $107,000 to $110,000, publicly listed companies have recently collectively increased their holdings by more than 8,800 BTC. Several institutions have continuously expressed optimism about Bitcoin's prospects in recent meetings. A media group even announced the launch of a $2.5 billion Bitcoin reserve plan. Reports indicate that BTC currently exhibits trading characteristics more closely related to global liquidity rather than relying on retail sentiment, and is now entering a healthy consolidation phase. Analysts remind that while the long-term structure remains bullish, stagnant network capital inflow and high SOPR indicators suggest short-term pullback risks, with $114,000 becoming a key resistance level.

The Ethereum ecosystem is showing a strong rise. Several institutions have significantly increased their holdings of ETH, optimistic about its and blue-chip ecosystem assets' prospects. A gaming company announced that after securing $425 million in financing, it will use ETH as its primary reserve asset, causing its stock price to surge nearly 500% in a single day. Although some banks predict that Solana may underperform Ethereum in the short term, they acknowledge its long-term potential in scenarios such as DePIN, expecting SOL to rise to $275 by the end of the year.

In the altcoin market, analysts believe that the traditional "altcoin season" era is difficult to replicate. The next wave of growth will be led by projects with strong fundamentals, well-designed token economics, and practical applications. A certain fund has added a new sector for artificial intelligence crypto assets, which has seen its market value grow four times compared to 2023, reaching $21 billion. In terms of project dynamics, recent activities from multiple ecological projects have driven significant increases in related tokens.

Overall, despite the uncertainty in the policy environment, the Crypto Assets industry continues to develop, with increasing institutional participation, and emerging fields such as artificial intelligence are also rising rapidly. Investors need to closely monitor market trends and view short-term Fluctuation rationally.