Today, the drama queens in the crypto circle are all busy with K-lines: some shout that 'Bitcoin is stuck in an 80,000 range', some cry that 'altcoins are dropping like they can be burned as paper money', and others are watching the ETH 2700 level to bet on price fluctuations. Honestly, you all have been misled by the surface!
The news that can really make you change your phone next month or eat instant noodles is hidden in the corner of the financial section: the stablecoin regulatory framework jointly issued by the Federal Reserve and the Treasury Department is the real game-changer, with devastating power!
Don't get weak at the mention of 'regulation'. I've been in the industry for five years and have seen countless 'wolf is coming' scenarios, but this time is different. This is not about 'regulating'; it's about 'recognizing kin'! Today, I'll lay out the fundamental logic for you; those who understand can position themselves now, and you might just be able to relax next year.
1. The regulators chose today to act as a 'whistle' for funds.
First, let me talk about how magical today's market is: mainstream assets seem to be paused, making people doubt if the exchange servers are stuck; meanwhile, small coins are collectively plummeting, with some dropping over 20% in a day, and the wailing of leveraged liquidation is flooding the community.
At this point, the regulators are not coming in to rescue the market or to crash it, but are instead shouting: 'Funds, return to your positions! From now on, we will follow the rules.' You should know that stablecoins are the 'tap water' of the crypto market; whether you're watering flowers, washing vegetables, or flushing toilets, you need to use it. Previously, this water pipe was controlled by various rogue methods, but now the U.S. is coming to turn the valve.
Why now? It's very simple: leverage has been largely cleared, and retail panic has reached its peak. At this time, establishing rules has the least resistance and the best effect. It's like cleaning a room; you have to sweep away the trash on the floor before you can rearrange the furniture.
2. It's not about 'killing coins', but about elevating the 'favorite child'.
Many people panic when they see the 'regulatory framework', thinking that stablecoins are doomed, which is a big mistake! The U.S. has never said it would eliminate stablecoins; rather, it wants to 'clean up the house'. The core of this new regulation can be summed up in one sentence: in the future, issuing stablecoins will require an 'official household registration'.
In plain language: those unqualified, non-transparent 'wild kids' will be regulated; while the well-rooted and bank-backed 'good kids' will be supported to become 'regular troops'. In the past, whoever had resources could issue, but in the future, it will depend on the U.S.'s approval.
This is essentially a power recovery, not suppression. Think about it, the dollar is the lifeblood of the U.S.; how could they allow the public to casually create 'substitutes'? What they are doing now is firmly grasping the issuance and control rights of stablecoins in their hands. Once this move is completed, the 'money rules' of the crypto market will change.
3. The secret of mainstream coins being as stable as old dogs: they are the 'guest of honor' of regulators.
Surely someone will ask: what does this have to do with my mainstream assets? The relationship is significant enough to determine whether your next wave will double or be halved!
What is a stablecoin? It is the fuel for trading, the ticket for institutions to enter, and the bridge for fund transfers. Once the U.S. controls this 'water pipe', the next wave of large funds will flow not based on speculation but according to the 'compliance list'.
Who do you think will be on the list? Small coins? Don't dream about it; the first shot of regulation will target those without background. Decentralized projects? There is still no clear statement, and funds dare not touch them. The safest bets are those well-known assets with significant institutional holdings and fast compliance progress.
Today's market has already given the answer: some mainstream coins are shining, and some have tested the bottom multiple times but have not broken the support level. This is not spontaneous market behavior; it's smart money positioning in advance. They understood before you did: since the day regulators set the rules, the 'fundamental' status of mainstream assets has been stabilized.
4. The truth behind the crash of altcoins: funds are 'throwing away trash and clinging to big legs'.
Let's talk about the tragic situation of altcoins today: some people are posting screenshots of their holdings, losing half a year's salary in a day; others are asking 'should we cut losses?'. I clearly tell you: this is not a weak market; it's funds 'clearing mines'.
Regulators are like fire safety inspectors, first checking which buildings are illegal constructions and which have aging electrical circuits. Most small coins lack compliance qualifications; some even have plagiarized white papers, so funds will run first. Mainstream assets, however, are like buildings with property certificates; they won't be demolished no matter how much they are checked.
This is the survival law of the crypto market: money always flows to the safest places. In the past, when the market was good, funds dared to speculate on vapor coins; now that regulators have arrived, funds will only cling tightly to 'hard currency'. Don't feel sorry for those altcoins that have plummeted; you should be glad you didn't buy at the peak.
5. My ultimate judgment: this is the 'foundation-laying ceremony' of the bull market.
Old players understand a rule: every time the regulators 'tighten up', it paves the way for the next 'explosion'. In 2017, regulatory tightening preceded a bull market; in 2021, various bans were issued, and in 2023, compliant products were released. History keeps repeating itself.
This time, the regulation of stablecoins is the same; it's not a bad thing, but it's laying the foundation for a bull market. Think about it, large funds, especially institutional funds, fear the most is 'lack of rules'. Now that the regulators have established a framework and told them 'this is safe, come quickly', do you think they will not come?
The current market looks like the 'end of a bear market', but in reality, it's 'the eve of a bull market'. Those who shout 'the market is going to crash' are either retail investors who are selling at the bottom or major players trying to fool you into selling your assets. The real bottom is always when the regulators step in to clean things up; and the real top is when regulators are indifferent.
Lastly, let me say something from the heart.
The inclusion of stablecoins in regulation is like installing a 'security door' in the crypto market. Although it limits some freedoms, it also keeps the 'bad guys' out. The upcoming script is very clear: funds will become cleaner, flow will become more concentrated, the status of mainstream assets will become more stable, and a bull market is getting closer.
What you need to do now is not to panic and cut losses, nor to blindly bottom-fish, but to sift through the assets in your hands: which are 'compliance potential stocks' and which are 'garbage that may explode at any time'. If you can't figure it out, keep a close eye on those mainstream assets heavily held by institutions; at least you won't step into a big pit.
