In the midst of strategizing, we decide the outcome from a thousand miles away. Hello everyone, I am Lin Chao, a global financial market observer, focusing on cryptocurrency market analysis, bringing you the most in-depth trading information analysis and technical teaching.

The giant wheel of global financial regulation is accelerating towards the deep waters of digital assets. As Hong Kong finalizes the implementation of the "Stablecoin Regulation" in August, the U.S. Senate follows closely behind, passing the landmark "GENIUS Act" with a significant advantage. The new South Korean government has also introduced a draft of the "Basic Law on Digital Assets," proposing to allow local qualified enterprises to issue stablecoins. In just the first quarter, the trading volume of U.S. dollar stablecoins on South Korea's five major exchanges reached a staggering 57 trillion won, accounting for over 80%. With regulatory frameworks in both the East and West being established, a clear pathway has been opened. Hong Kong's Financial Secretary Paul Chan pointed out the key: the programmable nature of stablecoins will drive a revolution in the automation and intelligence of financial services. The over HKD 10 billion digital asset trading volume in Hong Kong's banking sector last year is just the resounding prelude to this transformation.

A tidal wave of capital is flowing into the crypto world at an unprecedented scale. In the past month, 6,392 "whale" addresses quietly increased their holdings by 1.49 million ETH—such a volume is certainly not achievable by retail investors, but is clear evidence of institutional deep positioning. BlackRock's IBIT attracted over $1.1 billion in a single week, while U.S. spot ETFs set a new annual record with a net inflow of $13.2 billion for nine consecutive weeks. These signs collectively point to a future where the market capitalization of cryptocurrencies will experience exponential growth in the coming years. Lin Chao firmly believes that the bull market is far from over, and that Bitcoin's target of $170,000 is the next goal for the market.

The ultimate variable hanging over the market is undoubtedly the balance of the Federal Reserve's monetary policy. The latest CPI and PPI data, which were weaker than expected, have quietly stirred the market, anchoring rate cut expectations to the September window. Although Citigroup warns that the market may underestimate the possibility of rate cuts, Jefferies predicts that Powell will maintain a neutral stance this week. However, the future pricing of gold at $4,000 and the rise of U.S. stocks reflect the market's deep desire for a shift in liquidity. More critically, with Powell's term ending next year, Trump is almost certain to appoint a new chairman who supports rate cuts. Recently, Trump even called for the Federal Reserve to aggressively cut rates by 200 basis points (8 times)—it is foreseeable that after the new chairman takes office in the second half of next year, a prolonged "flood of liquidity" (rate cuts combined with possible monetary stimulus) will commence, undoubtedly opening an unprecedented era of frenzy for Bitcoin and altcoins. Lin Chao reminds everyone that when that time comes, it will be a crazy moment for everyone to leap across classes.

Lin Chao's Summary

Although Lin Chao is optimistic about the crypto market in the long term, it does not mean that this wave of dividends is easily attainable. A continuously rising market does not exist. In the short term, or even within this quarter, the overall crypto market is likely to experience a relatively deep correction. Taking ETH as an example, I wonder if everyone has looked at the on-chain data. The Wall Street crypto giant Cumberland transferred over 40,000 ETH to Coinbase before the significant drop, which clearly indicates an intention to cash out at high levels. From the large-scale K-line of Ethereum, there is significant resistance at around $2,800, which has been a resistance level for multiple rebounds and was previously a support level during declines, marking the exit point for many institutions. Lin Chao feels that the probability of having reached a peak here is quite high, especially considering that ETH has risen over 100% in the past two months. Such a large profit-taking opportunity, even if it continues to rise in the future, will still require a deep correction.

This is why, although Lin Chao has positioned ETH around $1,400 and $1,700, and knows that ETH will inevitably break new highs in the future, he still chose to take profits recently. While the entry of more institutional funds into the crypto market will drive the overall market capitalization increase, which is certainly a long-term positive, it also means that the market is now more filled with competition, no longer just a battle between original big players and retail investors, but more of a battle between large and small players, with ordinary retail investors merely being collateral damage. Therefore, everyone should not only look at the long term during operations but also learn to lock in profits at the appropriate time.

With regulations building a safety margin and institutional giants quietly positioning themselves, coupled with strong expectations for monetary easing, the Hong Kong Monetary Authority is on high alert to approve stablecoin licenses, the U.S. "GENIUS Act" is focused on building a safe harbor, and the SEC is attracting digital asset specialists to release friendly signals. The global regulatory puzzle is gradually becoming complete, and the upward trend of cryptocurrencies has become a foregone conclusion. While the market seems to be dormant in the summer, it is actually accumulating explosive momentum for an outburst. The longer the sideways movement lasts, the stronger the foundation becomes. Everyone can patiently wait for this quarter's correction to pass, and when the Federal Reserve's rate cut trumpet sounds and the "GENIUS Act" is fully implemented, it will mark the beginning of our journey across classes, and everyone can look forward to it.

We must always maintain sensitivity to information in order to make the right decisions at the right time; riding the wind is the only opportunity for ordinary people. The biggest prison in the world is the consciousness of people; if you cannot earn money beyond your cognition, then learn to leverage.

The global market is ever-changing, the world is a whole; follow Lin Chao to gain a top-tier global financial perspective.

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