A senior executive from a leading exchange recently revealed a real issue during a live broadcast: why did we get caught up in the US regulatory storm back then? The answer is simple—how to develop in compliance. It sounds straightforward, but it actually exposes the formidable power of national regulation. According to this executive, in that environment, as long as there was even one US user on the platform, regulators could find a reason to intervene within five years, according to the law. This kind of retrospective enforcement is indeed intimidating.

Looking ahead, how can we judge the market's rhythm? It’s most likely still in a cyclical bull market pattern. Why do I say that? There are several phenomena worth noting.

The A-shares market has broken a new high of 36 trillion yuan, which is quite alarming in itself. Coupled with recent information about 3.2 billion yuan in deposits maturing, these are positive signals for the crypto world. But what are the deeper reasons? Look at the economic aspect. Post-pandemic, the overall economic environment has become particularly difficult—entrepreneurship is hard, employment is tough. I visited Guangdong once, taking a sleeper train to see the train station, and I remember how bustling the station was back then. At that time, the employment environment was great, there was money to be made, and it was relatively easy to find a job. In contrast, after the pandemic ended, employment rates in major countries like the US and China have become imbalanced.

At this point, policies started to act. The US continuously cut interest rates, making it easier to borrow money; China lowered bank interest rates to encourage people to take out money for entrepreneurship, investment, or stock market participation. What was the result? Market liquidity accelerated, driving the overall economic cycle. The most direct example is the catering industry. This winter’s business is much better than right after the pandemic, and compared to two years ago, the difference is huge. Tourism is the same; this winter’s popularity has clearly rebounded. All these are benefits brought by capital flow.

Next, capital is likely to move toward leverage, which will occupy a large market share. That’s why the senior executives of exchanges say certain new tokens are the future direction. Later, tokens like Aptos, Sui, and Sol followed suit with similar products to seize the market. The core logic behind this is: increased capital flow → improved overall employment environment → more capital entering the market. Coupled with the explosive growth of the tech industry in recent years, especially the rapid advancement of AI technology.

AI has evolved from initial lag and blurriness to now generating ultra-clear videos, and even a single photo can produce smoothly animated content, greatly reducing the production cycle of special effects. Behind this technological upgrade is innovation-driven capital inflow, which in turn boosts the activity of the entire ecosystem.