Has the Federal Reserve 'given up'? After regulatory easing, the crypto market is about to witness institutional slaughter!

Act One: As the regulatory 'tightening' eases, banks collectively 'revolt'

The Federal Reserve has terminated the 'New Activity Regulation Program', equivalent to dismantling a 'firewall' for the crypto market—previously, banks had to go through approvals and write reports to engage in crypto business, a complicated process that could deter 90% of players. Now that the barriers have been removed, JPMorgan Chase and Bank of America have gone 'crazy': jointly issuing stablecoins, opening 24/7 fiat exchange channels, and even stuffing crypto asset custody services into VIP wealth management packages.

What’s even more ruthless is that banks are now providing 'insurance' for the crypto market—previously, retail investors would buy coins and store money on exchanges, which meant if the exchange went bankrupt, they would lose everything; now, if money is stored in the bank's cold wallet, what if the exchange collapses? Your coins are still there, and the bank covers you! This sense of trust will attract 'conservative' funds from traditional finance like a magnet, and the surge in liquidity is just the beginning.

Act Two: $120,000? That's just the appetizer for institutions

XBIT Exchange boldly claims: Bitcoin will hit $120,000 within the year. But the truth is, institutions don’t care about such a small increase—they are focused on 'compliance premiums'. Bank custody, stablecoin issuance, asset tokenization... these businesses can contribute hundreds of billions of dollars in profits to Wall Street every year.

While retail investors are still debating whether a bull market has arrived, institutions have already locked in risks with 'bank-level risk control'. The SEC investigates DeFi? It doesn’t matter; banks and traditional institutions continue to earn stable money; innovators (DeFi, NFTs) keep running wild but must pay a 'protection fee' (tighter regulation). The crypto market will thus become polarized: either act as 'regular troops' or become 'outlaws'.

Act Three: Your understanding is being 'dimensionally attacked' by policy

In 2022, a regulatory ban turned the crypto market into a river of blood; in 2025, policy reversal drove institutions to frantically scoop up assets. History has proven: regulatory winds can determine the life and death of an industry more than technology itself.

Now, the Federal Reserve's easing is just the beginning. Next, when will bank stablecoins be implemented? Can Bitcoin break $120,000 with liquidity? Will stablecoins take 80% of the market from Visa and Mastercard?

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