The Fed's "opening the floodgates" is confirmed! The biggest shackles in the encryption circle have been broken, and BTC is preparing for an epic move.

Family! I just cross-validated no less than 10 sources, and with shaky hands finished this article—this time the Fed is not just talking, they are serious! On April 25, 2025, the Fed officially revoked the "Strangulation Point Action 2.0" and abolished all regulatory guidelines that suppressed banks' participation in encryption since 2022. This is not some "expectation management," but a direct replacement of the "ban" on banks serving the encryption industry with a "license to operate!"

It is no exaggeration to say that this is the most hardcore fundamental shift in the encryption market of 2025, no exceptions.

1. Where exactly is the regulatory easing? Three details that were "previously impossible."

Don't be swept away by vague "good news"; the granularity of this policy shift is so detailed it makes one's scalp tingle:

1. Bank Custody of Encryption Assets: From "Gray Area" to "Sunshine Business"

In the past, banks were fearful of FDIC troubles when trying to help clients custody BTC. Now the guidelines are clear: as long as they meet anti-money laundering and capital adequacy requirements, licensed banks can directly engage in digital asset custody. What does this mean? Giants like JPMorgan and Bank of America, which manage trillions of dollars, can now include BTC in their asset servicing business without having to go through subsidiaries like Fidelity Digital Assets.

2. Stablecoin issuance: The bank version of "digital dollar" is about to launch.

The Fed has simultaneously affirmed the legislative progress of the GENIUS Act and the CLARITY Act, which establish clear reserve rules for US dollar stablecoins. The issuer of USDC, Circle, has stated that it is "ready to cooperate with banks at any time," while Tether's market cap of $65 billion appears so fragile under a compliance framework. The data speaks for itself: in 2024, the total market cap of stablecoins has surpassed $230 billion, with USDT and USDC combined accounting for 91%. Once bank-backed stablecoins enter the market, this market will expand exponentially.

3. Exchange fiat channel: from "disconnected every few days" to "direct bank connection"

After the collapse of Signature Bank in 2023, the fiat deposit and withdrawal channels for exchanges like Coinbase were once in jeopardy. Under the new policy, banks can provide payment channels for compliant exchanges on a "case-by-case approval" basis, no longer subject to the "strong presumption against" principle. In simple terms: banks no longer have to fear being regulated for serving encryption enterprises.

This is not relaxation; it is equipping the entire encryption economic system with a "turbocharger of traditional finance."

Second, why do I say BTC will go "crazy"? The data has already placed bets in advance.

After the policy announcement, the market voted with real money:

• ETF funds are going on a buying spree: By November 2025, Bitcoin ETF net inflows reached $46.6 billion, with BlackRock's IBIT single product managing assets of $51 billion. Institutions are not betting, they are rushing ahead.

• Whale positions are unusually strong: Although BTC has corrected by 20% from its high of $106,000 in December 2024, the exchange's BTC reserves sharply decreased by 668,000 coins (-21%) between November 2024 and May 2025. What are the whales doing? Transferring to cold wallets instead of selling. On-chain data shows that after long-term holders (LTH) took profits of over 1 million BTC in Q4 2024, they resumed accumulation in January 2025 following Trump's inauguration, with the monthly growth rate skyrocketing from -0.25% to +2%.

• Volatility compressed to the extreme: The volatility component of the fear index has fallen below the 30-day average, but the trading volume of perpetual contracts has surged by 79.6% quarter-on-quarter in Q4 2024. This indicates that retail investors are on the sidelines, while smart money is taking advantage of the low-volatility environment to build long positions.

The most terrifying signal is: while the BTC market share has dropped from 43% to 34%, the exchange reserves are plummeting. This means that the outflowing BTC has not returned to the altcoin market, but has been strategically accumulated by institutions in the form of OTC on their balance sheets. This is not a retreat; it is a strategic reserve.

Three, adopting the ladder "bank → institution → enterprise → sovereignty": where are we now?

The user's original "adopt stair" framework is completely correct, but the timeline is faster than expected:

Phase One (Bank Entry): Initiated

• Time: Policy implementation in April 2025

• Sign: BNY Mellon has publicly applied for a digital asset custody license, and Citigroup has announced the provision of a "digital asset service package" for institutional clients.

• Impact: It is expected that by Q1 2026, half of the top 20 banks in the United States will launch encryption custody services.

Phase 2 (Institutional Accumulation): In Progress

• Data: The average daily trading volume of ETFs increases from $1.2 billion in 2024 to $3.5 billion in 2025, with the institutional holdings ratio rising from 18% to 31%.

• Sign: MicroStrategy increased its holdings by another 50,000 BTC in Q1 2025, bringing its total holdings to 450,000; insurance company MassMutual expanded its BTC exposure to $1 billion.

Stage Three (Enterprise Application): Critical Point

• Signal: The BTC on Tesla's balance sheet increases from 9,720 coins at the end of 2024 to 15,000 coins in Q1 2025; Square's Cash App announces in March 2025 that it allows business accounts to send and receive BTC directly.

• Timeline: By the end of 2025, it is expected that 10% of companies in the S&P 500 will use BTC as a treasury management tool.

Stage Four (Sovereign Layout): Hazy

• Reality: After Trump takes office in January 2025, the US government has mandated an assessment of "strategic BTC reserves" through an executive order, holding over 200,000 coins.

• Next step: The "Bitcoin Bill" proposed by U.S. Senator Cynthia Lummis has received bipartisan support in Congress and plans to purchase 1 million BTC over the next 5 years.

From "bank on the sidelines" to "banks entering the market," it took less than 6 months for this ladder. When JPMorgan started recommending a 1-5% BTC allocation to its private banking clients, guess what happened?

4. Is it still time to get on board? Three practical suggestions.

1. Don't FOMO chase the highs, but do "structural accumulation".

Policy benefits ≠ a surge tomorrow. Historical data shows that after a significant regulatory shift, the market typically needs 60-90 days to digest expectations. However, the fluctuation range will clearly narrow, as whales are accumulating. Strategy: Use a "pyramid investment" approach, adding 10% to positions every time the price drops by 5%, not chasing after rises, but ensuring you have the chips in hand.

2. Focus on "bank-related" infrastructure targets

• Exchange: Coinbase (COIN), as the most compliant listed exchange, will directly benefit from the opening of banking channels.

• Custody: Anchorage Digital and BitGo have obtained federal banking licenses and will become the preferred institutional custodians.

• Stablecoin: Circle (USDC) may see its market value rise from the current $35 billion to $100 billion due to compliance advantages.

3. Leverage is poison, spot trading is king.

The current market is in a "low volatility + high funding rate" combination, with the annualized funding cost for perpetual contract longs reaching 18-22%. The volatility of BTC spot is only around 12%, and holding long contracts equals stable losses. It is better to hold spot or wait for a clear breakout signal (such as stabilizing above 100,000 USD) before using low leverage.

5. Risk Warning: The Fed's "green light" also has yellow lines.

Stay calm: what the Fed withdrew is only the "business guidance", not the Federal Deposit Insurance Act. Banks holding FDIC deposit insurance are still subject to strict restrictions and cannot directly use customer deposits to trade cryptocurrencies. In addition, anti-money laundering (AML) and capital adequacy requirements will only become stricter, not relaxed.

The greater uncertainty lies in the FOMC meeting in December 2025. If inflation data rebounds, the Fed may be forced to tighten liquidity again, at which point all risk assets will come under pressure. Although the encryption market is supported by favorable regulations, it cannot completely rise independently from the macro environment.

In summary: the long-term trend has reversed, but short-term fluctuations still exist. Don't let the "crazy bull" expectations cloud your judgment; position management is more important than any analysis.

💬 The final soul-searching question

Family, what do you think:

1. Will the Fed's "opening the floodgates" allow BTC to break $150,000 before Q1 of 2026?

2. After the banks enter the market, what will be the first "hit" application? (Custody? Payment? Stablecoin?)

Like 👍 let the platform know this is hardcore content, share it with friends who are still on the fence, follow me @CryptoMiner, I will track it in real time:

• The latest progress of banks applying for licenses

• Daily net inflow data of institutional funds

• On-chain whale address movement warning

See you in the comments section! I will reply seriously to each of your messages. Remember: in the encryption circle, information difference = wealth difference, follow me @CryptoHunter, let's grab the main line together and not get lost!

#加密市场小幅回暖 $BTC ‌