The following script is likely to unfold as follows:

With a loosening of policies, some crypto-friendly bills are gradually being passed, and the market quickly sniffs out the signals, starting to speculate on the expectations of "institutional dividends." To put it nicely, this is called regulatory clarity, where everyone begins to bet on the influx of funds that legalization will bring.

Then, as the bills are truly implemented, what was initially just good news on paper starts to transform into real liquidity channels. For example, banks can provide custody, brokerages can conduct business, and cryptocurrency stock trading will turn the previously inaccessible funds into large-scale, legal, and compliant entries.

At the same time, there are macroeconomic expectations of interest rate cuts beginning to be released. The market understands that this round of tightening has put a lot of pressure on everyone, and once it turns around, it will be a collective revaluation of assets, marking the liquidity inflection point, where the crypto market often reacts even faster than traditional markets.

When interest rate cuts actually start, real money begins to flood in, raising the water level in the market, and assets like cryptocurrencies, which are driven by sentiment, become the most direct beneficiaries. As prices strengthen, market confidence immediately returns.

Then comes the scene everyone is most familiar with: once prices stabilize and begin to break through historical highs, FOMO (Fear of Missing Out) emotions ignite like a powder keg, and everyone fears missing out, wanting to hop on board. Those who previously declared "the bull market is over" begin to chase prices while shouting, "this time it's different."

Market sentiment is completely ignited, dead projects start to revive, KOL (Key Opinion Leaders) increase their streaming frequency, and various narratives take flight. As soon as the profit-making effect emerges, people on the sidelines can no longer sit still, and even those who once thought the crypto market was a scam begin to look for ways to open accounts, build positions, and buy, buy, buy.

The market ends its divergence and begins to unify in a bullish outlook, with everyone believing that an eternal bull market has arrived, only for the bull market to end.