The main reasons for the recent pullback in the cryptocurrency market are twofold. Firstly, from a micro perspective, the series of hacker attacks has raised concerns among traditional investors, increasing risk aversion. Secondly, from a macro perspective, the DeepSeek open-source week further exposed the AI bubble in the U.S., combined with the actual policy direction of the Trump administration. On one hand, this has ignited market worries about stagflation in the U.S., and on the other hand, it has initiated a reassessment of risk assets in China.

In general, zkTLS is a new technology that combines zero-knowledge proofs (ZKP) and TLS (Transport Layer Security Protocol). It is mainly used in the Web3 space to verify the authenticity of off-chain HTTPS data provided without the need to trust a third party in an on-chain virtual machine environment.

Overall, the author believes that "Trump's issuance of currency" marks the official return of American neoliberalism, where survival of the fittest and brutal growth will become the main theme of this new era. More specifically, against the backdrop of deregulation, Web3 will take up the banner of financial innovation in the new cycle of the United States.

Overall, the author believes that many high-growth risk assets, including the cryptocurrency market, will continue to face price pressure in the short term. This is due to the widening term premium in the U.S. Treasury market and rising medium- to long-term interest rates, which have had an adverse impact. The reason for this situation is that the market is pricing in the U.S. debt crisis.

Overall, looking at 2024 and anticipating 2025, I believe it is quite appropriate to summarize in four sentences: from wilderness to universality, from chaos to order, from recession to bubble, from conservatism to reform. Next, I will share my thoughts and outlook using some events that I consider to be quite representative.

Last week, the cryptocurrency market experienced a significant pullback, which was generally attributed to Federal Reserve Chairman Powell's so-called "hawkish rate cut," triggering concerns in risk markets about inflation and economic recession. However, according to my analysis, this may only be a secondary factor causing capital panic. The real impact stems from Trump's strong pressure on the short-term spending bill in Congress, initiated in collaboration with Musk last Wednesday, and the uncertainty caused by his threat to eliminate the debt ceiling rules, which ignited a funding crisis.

The recent market turbulence is due to how to continue capturing incremental value after the BTC price breaks new highs. My view is that we should focus on whether BTC can take over from AI and become the core driving force for economic growth in the new political and economic cycle under Trump's administration. This game has already begun with the wealth effect of MicroStrategy, but the entire process will inevitably face numerous challenges.

Overall, this seems to be quite an interesting little program that effectively utilizes conversational AI to further lower the threshold for issuing MEMEs. Interested friends can give it a try, with each user allowed to create once a day. Of course, the essence of MEMEs is still their traffic value; only by solving this issue will the MEMEs you issue have value. For the platform, if it can continuously maintain the wealth effect, I believe the community's power will provide rich tools.

I believe the reason for the rise in MicroStrategy's stock price is the "Davis Double Play," which ties the appreciation of BTC to the company's profits through a business design that involves financing the purchase of BTC. This, combined with innovative designs that leverage funding from traditional financial market financing channels, enables the company to achieve profit growth that surpasses the appreciation of its own held BTC.

With the improvement of regulatory expectations, I believe the ETH Staking sector will be the one with the highest direct returns, and Lido, as a leading project, may also be able to break free from its current price predicament.