As the regulatory environment shifts, the crypto market is reaching a critical turning point, with Wall Street funds accelerating their inflow, Bitcoin continuing to lead, and some truly valuable crypto projects poised for takeoff.

Author: Stephen McBride

Translation: Baihua Blockchain

Source: TradingView

1. The Crypto Market is at a Critical Turning Point

Bitcoin (BTC) has stagnated after breaking through $100,000, while many smaller cryptocurrencies have retraced their gains following the election.

However, in the history of cryptocurrencies, we are about to witness an unprecedented change—government support, which is exactly what the market has long desired.

Research indicates that this will serve as a strong catalyst for a new round of price increases in cryptocurrencies, potentially breaking the long-standing four-year cycle.

Washington's attitude has taken a sharp turn, transforming 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**, laying the groundwork for a supportive regulatory environment for cryptocurrencies, ending "Operation Choke Point 2.0," and ensuring that cryptocurrency companies have access to banking services.
• The U.S. Securities and Exchange Commission (SEC) announced the establishment of a special task force to formulate new regulatory rules to clarify which tokens are considered securities and which are commodities.
• The SEC repealed SAB 121, a vague rule that previously made it nearly impossible for banks to custody cryptocurrencies for clients.
• The Commodity Futures Trading Commission (CFTC) will be led by cryptocurrency supporter Brian Quintenz, further promoting a regulatory environment favorable to the industry.
• Congress is expected to pass a stablecoin bill this year, providing a legal framework for the stablecoin market.
• Trump's crypto policy chief David Sacks stated that the government aims to make the U.S. the "global cryptocurrency capital."
• A Texas judge overturned sanctions against the privacy protocol Tornado Cash, marking a significant shift towards a more innovation-friendly regulatory stance.
  These positive regulatory changes are numerous, and just the policy shifts in the past month could fill several pages!

2. Regulatory Clarity is a Green Light Signal for Wall Street

The world's largest pool of funds can finally make a significant entry 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 sound and makes it a truly legal business area, you will see the entire banking system fully enter."

Now, Wall Street can finally invest with confidence, entrepreneurs can build freely, and we as investors will seize opportunities in this major transformation, continuing to hold the highest quality crypto assets.

Most investors do not realize how severely the regulatory storm of the past few years has impacted the crypto market. And now, they are underestimating the profound effects of this policy shift on the future of the crypto market.

The U.S. government is shifting from an anti-crypto stance to a supportive one. For the past four years, every discussion about crypto regulation has been bad news—"Oh great, another three-letter agency is suing some protocol." Now, the situation has completely reversed.

The most significant catalyst in crypto history is about to arrive just as market sentiment hits a multi-year low. The Memecoin craze is about to fade, and next, U.S. crypto innovation will usher in true prosperity. The regulatory floodgates have opened, and Wall Street giants will soon step into this new realm.

3. Capital Flows are the Key Reason Bitcoin Continues to Lead this Bull Market

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

In contrast, smaller cryptocurrencies lack such capital flow support; their market performance is almost maintained by sporadic retail buying, with most investors only purchasing a few hundred dollars' worth of tokens.

In recent years, due to regulatory hurdles, those crypto funds that once dominated the market have struggled to raise new capital, resulting in even fundamentally strong smaller cryptocurrencies having few buyers. But as the regulatory environment gradually clarifies, this situation is changing.

From what I understand, dozens of crypto funds are actively fundraising, aiming to complete their fundraising this quarter. This means that by early summer this year, the market may see a new wave of capital influx.

I also believe that regulatory clarity could break the traditional four-year cycle—and in a positive direction.

Since the crypto market bottomed out at the end of 2022, Bitcoin has been the market leader.

According to past four-year cycles, capital flows should have started entering smaller tokens at this stage, but this time, they are still waiting for opportunities.

Typically, the market would experience a deep correction in 2026, but Washington's policy shift towards cryptocurrencies may extend this cycle longer.

ETFs have already brought tens of billions of dollars in new capital to the crypto market, and Washington's policy shift could potentially introduce "trillion-dollar" capital inflows.

Our research indicates that the actual progress of the current market cycle is ahead of the calendar timeline.

In 2025, Bitcoin's price could soar to $250,000.

However, most investors are still looking back, haunted by the shadows of years of regulatory storms, and have yet to realize—the U.S. is about to become the global center for cryptocurrency innovation!

4. With the Shift in the Regulatory Environment, Truly Valuable Crypto Projects are About to Experience Explosive Growth

In recent years, due to poor regulation, a large amount of capital has been blocked from the crypto market, preventing most projects from gaining real development opportunities. Now, the situation is changing.

Although 99% of cryptocurrencies still lack long-term value… that 1% of quality projects are innovatively solving real problems and have already begun to turn a profit.

I have just conducted in-depth research and discovered three promising innovative crypto projects:

• One is challenging Google's industry dominance.

• Another has created an "AI chip" version of Airbnb.

• The third has established partnerships with well-known brands like Disney, Netflix, HBO, Apple, and Nike.
  The regulatory floodgates have opened, and real value investment opportunities are here!

  Article link: https://www.hellobtc.com/kp/du/03/5706.html
  
  Source: https://medium.com/coinmonks/the-defining-moment-for-crypto-is-here-372cbf812089
  

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