Is 2025 the moment that determines the fate of Crypto Assets?

Compilation: Plain Language Blockchain

Source: TradingView

1. The cryptocurrency market is at a critical turning point.

Bitcoin (BTC) stalled after breaking $100,000, while many small cryptocurrencies have given back their post-election gains.

However, in the history of cryptocurrency, we are about to usher in an unprecedented change - government support, which is exactly what the market has longed for.

Research suggests that this will be a strong catalyst for a new round of cryptocurrency price increases, and may even break the four-year cycle that has persisted for a long time.

Washington's attitude has made a U-turn, turning cryptocurrencies from 'effectively illegal' to 'a national priority development project.' In the past month, we have witnessed a series of almost countless positive regulatory changes:

• Trump signed an executive order to lay the groundwork for a regulatory environment supporting cryptocurrencies, ending 'Operation Choke Point 2.0' and ensuring cryptocurrency companies access to banking services.
• The U.S. Securities and Exchange Commission (SEC) announced the establishment of a special working group to develop new regulatory rules to clarify which tokens are securities and which are commodities.
• SEC abolishes SAB 121 provisions, which previously made it nearly impossible for banks to custody cryptocurrencies for clients, have been lifted.
• The Commodity Futures Trading Commission (CFTC) will be led by cryptocurrency advocate Brian Quintenz, which will further promote a regulatory environment conducive to industry development.
• Congress is expected to pass a stablecoin bill this year, providing a legal framework for the stablecoin market.
• David Sacks, the head of Trump's crypto policy, said the government wants to make the United States the "global capital of cryptocurrencies".
• Texas judge overturns sanctions against privacy protocol Tornado Cash, marking a significant shift towards more innovation-friendly regulatory agencies.

The regulatory changes are countless, and the policy shift in just the past month is enough to fill several pages!

Regulatory clarity is Wall Street's green light signal

The world's largest capital pool can finally make a major move into the crypto market.

For example, last month, when asked whether Bank of America would enter the crypto business, CEO Brian Moynihan responded, "If the regulatory framework is perfected to make it a truly legitimate field for conducting business, you will see the entire banking system fully enter."

Now, Wall Street can finally invest with confidence, entrepreneurs can finally build with peace of mind, and as investors, we will also seize the opportunity in this major transformation and continue to hold the highest quality of crypto assets.

Most investors are not aware of how severe the regulatory storm of the past few years has been on the cryptocurrency market. And now, they are underestimating the far-reaching impact of this policy shift on the future of the cryptocurrency market.

The U.S. government is shifting from an anti-encryption stance to supporting encryption. For the past four years, every discussion on encryption regulation has been bad news - 'Oh, great, another three-letter agency is suing some protocol.' Now, the situation has completely reversed.

The most important catalyst in the history of encryption is about to arrive as market sentiment hits multi-year lows. The Memecoin craze is about to exit, and next, America's encryption innovation will truly prosper. And the regulatory gate has already opened, with Wall Street giants soon stepping into this new world.

3. The flow of funds remains a key reason why Bitcoin continues to lead this bull market.

Since BlackRock launched the iShares Bitcoin Trust ETF (IBIT), this ETF has attracted $40 billion in funds in just one year.

In contrast, small cryptocurrencies lack such capital flow support, and their market trends are almost maintained by sporadic retail buying. Most investors just buy a few hundred dollars' worth of chips.

Over the past few years, due to regulatory resistance, cryptocurrency funds that once dominated the market have struggled to raise new capital, leading to a reluctance to buy even small cryptocurrencies with strong fundamentals. But as the regulatory environment gradually clarifies, this situation is changing.

As far as I know, dozens of crypto funds are actively raising funds, with the goal of completing fundraising this quarter. This means that by early summer this year, the market may see a new wave of funds.

I still believe that regulatory transparency may break the traditional four-year cycle—and in a positive direction.

Since the bottom of the cryptocurrency market at the end of 2022, Bitcoin has been the market leader.

Looking at the past four-year cycle, the capital flow at this stage should have already started to enter small-cap tokens, but this time, they are still waiting for the opportunity.

Generally speaking, the market will see a deep correction in 2026, but Washington's major shift in cryptocurrency policy may prolong this cycle.

ETF has brought hundreds of billions of dollars in new funds to the cryptocurrency market, and the policy shift in Washington could introduce a "trillion-level" influx of funds.

Our research shows that the actual process of the current market cycle is earlier than the time points shown on the calendar.

By 2025, the price of Bitcoin may soar to $250,000.

However, most investors are still looking back, haunted by the shadow of years of regulatory storms, and have not yet realized that the United States is about to become the global center of cryptocurrency innovation!

4. With the changing regulatory environment, truly valuable crypto projects are about to experience explosive growth.

In the past few years, due to the lack of smooth regulation, a large amount of funds have been blocked outside the cryptocurrency market, resulting in most projects unable to obtain real development opportunities. Now, the situation is changing.

Although 99% of cryptocurrencies still lack long-term value... But that 1% of high-quality projects are innovatively solving real-world problems and have begun to be profitable.

I have just conducted in-depth research and discovered three innovative cryptocurrency projects with potential:

• One of them is challenging the dominant position of Google in the industry.
• Another one has created an 'AI chip version of Airbnb'.
• The third has established cooperation with well-known brands such as Disney, Netflix, HBO, Apple, Nike, etc.

Regulatory gate has been opened, real value investment opportunities are here!