Last night's sharp decline was mainly due to
Policy and regulatory shocks
The U.S. 'Genius Act' is implemented: Trump signs the first federal
cryptocurrency
legislation, which establishes a legal status for stablecoins, but the strict regulatory framework (such as the 1:1 dollar reserve requirement) raises market concerns about policy uncertainty.
Hungary's criminal crackdown on cryptocurrency trading: New regulations impose imprisonment on unlicensed traders, leading to increased risk-averse sentiment among European investors.
Macroeconomic headwinds
Expectations for Fed rate cuts are rising: Governor Waller calls for an 'immediate 25 basis point rate cut', triggering recession concerns and selling off risk assets.
Future development expectations
The U.S. 'Genius Act' may drive global regulatory follow-up, with compliant platforms like Coinbase and Circle attracting more funds.
Improvements in Bitcoin's Lightning Network and Ethereum staking enhance usability, with traditional financial institutions (such as Standard Chartered) continuing to enter the market.
This sharp decline is a result of the resonance of policies, funds, and technology, leading to increased short-term volatility but no change in long-term trends. Expectations around the departure of 'Old Bao' combined with expectations from Jiangxi suggest a significant market event is likely in August-September.
