Looking back, what happened this week:

CPI and PPI came in below expectations, and the market began pricing in rate-cut expectations.

BlackRock’s Bitcoin ETF options position limit was raised by 4x, meaning institutions can deploy more capital to participate in the market.

BlackRock CEO said that over the next 12 months, they are very bullish on the crypto market and are no longer worried about excessive leverage.

CZ said that crypto asset penetration is still below 1%, and there is still enormous room for growth.

Coinbase saw 60 consecutive days of negative basis, yet there wasn’t the kind of relentless selloff seen in the past—suggesting that there are always buyers stepping in.

Meanwhile,

the situation in the Middle East escalated, the US stock market pulled back, and geopolitical tensions continued to mount…

If you put these messages together, in the past it would be easy for the market to fall continuously.

But this time, the market didn’t follow the old script.

What used to determine the market was retail sentiment.

Now, what determines the market is institutional capital.

They won’t chase rallies and dump just because of a single piece of news.

They care more about whether:

this market can continue to see capital inflows over the next 5 years and 10 years.

So recently, Zhuge has become even more convinced of a saying:

A real bull market isn’t driven by news moving prices; it’s about capital changing the structure of the market.