 ▲ Bitcoin (BTC) |
The virtual asset market has moved past a phase of extreme fear and is entering a major turning point marked by policy shifts under a new administration and the establishment of institutional frameworks, ushering in a full-scale restructuring of market dynamics.
Paul Barron, host of The Paul Barron Podcast, said on February 10 (local time) that although the consumer sentiment index recently hovered between 5 and 9, marking historically low levels of fear, this could instead signal that Bitcoin (BTC) is forming a bottom. He 전망ed that even amid a broad market slowdown, the Trump administration’s crypto-friendly policies and a $100,000 Bitcoin price target could serve as powerful catalysts. Current volatility is a typical phenomenon seen in the early adoption phase and is expected to become a gateway for large-scale capital inflows over the long term.
Macroeconomic changes in the US economy and the Federal Reserve’s policy direction have also emerged as key variables reshaping the market. Economist Kevin Warsh, reportedly under consideration by President Donald Trump as the next Fed chair, is seen as likely to shift from a historically hawkish stance to a more dovish posture that could allow for interest rate cuts. Close cooperation between the Trump administration and the Treasury is expected to provide positive liquidity to risk asset markets after this summer. In particular, as major countries such as China and Japan reduce their US Treasury holdings and accumulate gold, Bitcoin is once again drawing attention as a powerful hedging instrument.
Efforts to establish legal frameworks for integrating virtual assets into the formal financial system are also accelerating. Legislative initiatives such as the US crypto market structure bill CLARITY and the stablecoin regulation bill GENIUS are improving previously ambiguous regulatory environments and lowering barriers for institutional investors. Hunter Horsley, head of research at Bitwise, predicted that roughly two-thirds of all financial institutions would participate in the virtual asset market within the next six months. As government-level actions take shape, including White House discussions with major banks over stablecoin yield issues, virtual assets have reached a stage of recognition as mainstream financial assets.
Positive technical outlooks for Ethereum (ETH) and XRP are also gaining traction. Fundstrat founder Tom Lee recently accumulated $82 million worth of Ethereum despite a 40% price drop, signaling expectations of a strong V-shaped recovery. Ethereum is evolving into a token that encapsulates all forms of value as it expands its ecosystem. XRP, backed by Ripple’s scalable financial architecture, is likewise expected to play a key role in payments and liquidity provision amid volatile market conditions. Following large-scale liquidation events, the market’s energy is once again being compressed, putting the price resilience of major assets to the test.
The virtual asset market is evolving into a more mature financial ecosystem through the current painful correction. Institutional participation and the establishment of legal guidelines signal a shift away from a retail-driven speculative market toward a legitimate store of value and medium of exchange. Rather than being swayed by short-term sentiment indicators, investors should adjust their portfolios with a long-term perspective, closely monitoring policy directions from the administration and capital flows from major banks. Once the structural integration of the market is complete, the standing of virtual assets will be fundamentally transformed.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on it. The content should be interpreted solely for informational purposes.*