The Investment Traps Behind the "Breaking the Circle" of Crypto Assets The shift in the U.S. political landscape is reshaping the capital market structure. With Trump’s rise promoting pro-crypto policies, the traditional stock market is experiencing an unprecedented wave of "cryptocurrencyization." This radical policy shift not only changes the regulatory environment but also profoundly impacts investors' asset allocation logic. **From Margins to the Center: The Crypto Wave** Trump, self-proclaimed as the "first crypto president," immediately overturned previous strict regulations on digital assets upon taking office and instead pushed legislation supporting the crypto industry. More notably, he personally launched the TRUMP meme coin and publicly endorsed crypto investments multiple times. These high-profile moves quickly altered the market position of the crypto industry—from once being a "non-mainstream finance" to becoming a focus of Wall Street attention. Under this trend, investor behavior has also changed. To date, over 250 listed companies have officially incorporated cryptocurrencies into their balance sheets, many adopting aggressive accumulation strategies by holding large amounts of Bitcoin and other digital assets to attract market attention. Even more concerning is that some of these companies lack genuine core business support, with their "business models" reduced to mere asset holdings and price speculation. **Risks Spreading from Retail Investors to Institutions** Unlike previous crypto bull markets primarily affecting individual traders, the current crypto craze is spreading through traditional financial channels like the stock market to a broader range of retail and institutional investors. This means that high-volatility assets once isolated from mainstream finance are now directly linked to the pensions and savings accounts of ordinary investors. Lax regulatory environments, political momentum, and the aggressive "cryptocurrencyization" of listed companies have collectively created a new source of risk—investors are now facing unprecedented price volatility and valuation overextension risks. This is not only a sign of the crypto industry's prosperity but also a profound reshaping of the risk landscape across the entire capital market.

**The Vanishing Weight: Why Bitcoin's Next Rally May Finally Break Free** A critical shift is unfolding beneath the surface of Bitcoin markets. While spot prices capture headlines, the real story lies in what's dissipating—the structural constraints that have kept BTC artificially compressed. According to Glassnode analysis, the historical $23.6 billion Bitcoin options expiration has just cleared, removing a significant layer of mechanical price pressure that dominated recent weeks. **When Hedges Fade, Price Discovery Returns** For most of November and December, Bitcoin's attempted rallies faced persistent headwinds from hedging dynamics in the derivatives space. These weren't organic buying signals—they were technical necessity. Traders managing large option positions created a ceiling effect that blocked natural price appreciation. Now that the massive expiration cycle has passed, that dead weight is finally gone. The implications are profound. When price action is no longer dictated by hedging flow dissipating into the market, the price discovery mechanism can reassert itself. This is the transition from mechanical price behavior to genuine market consensus. The current structure suggests Bitcoin is positioned for more sustainable upward momentum, freed from the artificial constraints that plagued the previous two months. **Macro Tailwinds Are Still Accelerating** Zooming out to the bigger picture reveals why the timing of this derivatives relief matters. The U.S. M2 money supply hit a new all-time high of $22.3 trillion in November, expanding 4.3% year-on-year. This marks the 21st consecutive month of expansion—a relentless liquidity injection that shows no signs of stopping. Even more striking: real money supply (adjusted for inflation) grew 1.5% year-on-year, now in its 15th straight month of expansion. This means liquidity growth isn't just nominal smoke—it's real purchasing power entering the system. The U.S. money supply currently sits approximately $400 billion higher than the 2022 peak, cementing the structural devaluation of fiat currency as a long-term trend. **The Confluence: Timing and Opportunity** Combine dissipating derivatives pressure with expanding monetary stimulus, and the setup becomes clearer. Bitcoin's recent pullbacks have shown strong support levels, suggesting institutional and retail accumulation continues even during corrections. The absence of forced hedging selling means these dips are increasingly met with genuine buying—not mechanical rebounds. This convergence of technicals and fundamentals suggests Bitcoin is entering a phase where both the near-term chart and the macro environment are working in tandem, rather than at cross-purposes. The burden has lifted. Price discovery can resume.