Policy fluctuations trigger market Fluctuation, Crypto Assets face new opportunities and challenges

Recently, the global financial markets have shown a unique fluctuation pattern due to policy reversals. Wall Street even coined the term "TACO trading" to describe the phenomenon where the market drops after certain policy announcements and then rebounds due to a softening of the policies. Last Friday, a political figure threatened to impose high tariffs on EU goods, leading to a market decline. However, just two days later, he stated that he had a good conversation with the President of the European Commission and extended the deadline for the agreement, causing the market to recover immediately. Analysts at UBS Wealth Management pointed out that this kind of reversal has become the norm, and investors should maintain rational expectations.

The Bitcoin market exhibits mature characteristics dominated by institutions. Although the price is consolidating in the range of $107,000 to $110,000, recently, listed companies collectively increased their holdings by over 8,800 BTC, and institutional investors remain optimistic at the Bitcoin 2025 conference in Las Vegas. Additionally, a new bill promises to purchase 1 million BTC within five years, and a media group has announced the launch of a $2.5 billion Bitcoin reserve plan. The Bitfinex Alpha report indicates that BTC is currently exhibiting trading characteristics more closely related to global liquidity. Analyst Willy Woo reminds us that while the long-term structure remains bullish, stagnation in network capital inflow and the high SOPR indicator suggest a short-term correction risk, with $114,000 becoming a key resistance level.

The Ethereum ecosystem is showing a strong upward trend. Trend Research has increased its ETH holdings to 133,600 coins through leveraged trading, with a market value of approximately $358 million. At the same time, a gaming company announced that after securing $425 million in financing, it would use ETH as its main reserve asset, leading to a nearly 500% surge in its stock price in a single day. Although some analysts predict that Solana may underperform Ethereum in the short term due to its excessive reliance on Meme coin trading, they acknowledge its long-term potential in scenarios like DePIN, forecasting that SOL will rise to $275 by the end of the year.

In the altcoin market, a chief investment officer of a certain fund believes that the traditional "altcoin season" is unlikely to reappear, and the next round of growth in the crypto market will be led by projects with solid fundamentals, well-designed tokenomics, and practical applications. A well-known fund has added an artificial intelligence crypto assets segment, which has seen a fourfold increase in market value compared to 2023, reaching 21 billion USD. In terms of project dynamics, Virtuals' recent new offerings have driven ecosystem tokens like LUNA and AIXBT up by over 30%; Cetus, in collaboration with the Sui Foundation, has launched a complete asset recovery plan, and the related tokens have also risen this morning.

In this complex and ever-changing market environment, investors need to remain vigilant, closely monitor policy changes and market trends, while also recognizing that the Crypto Assets market is gradually maturing, with the participation of institutional investors bringing new opportunities and challenges to the market.