The atmosphere in the crypto market has indeed been a bit oppressive lately. The Fear and Greed Index has dropped back into the "Fear" zone — last year's hopeful investments in alts now look terrible on paper; looking over at the neighboring U.S. stock market, the AI zone and space concepts are all the rage, but looking back here, apart from the endless stream of memes and Be Played for Suckers projects, it seems we can't come up with anything strong. The external impression of the crypto circle? A casino.

To be honest, it doesn't feel good for anyone.

But the market is such that emotions are one thing, and fundamentals are another.

First, let's talk about the macro: The Federal Reserve is set to stop the balance sheet reduction in December and will restart the bond purchase program—what does this mean? Liquidity is coming back. Inflation data is improving, GDP performance is stable, and the U.S. strategy betting on AI to drive the economy seems to be working so far, increasing the probability of a soft landing. In the short term, the macro pressure faced by the crypto market is not significant.

Looking again at the changes in the regulatory landscape: the influence of stablecoin-related legislation continues to grow, with market capitalization reaching a new high; traditional financial giants like Stripe, Visa, and BlackRock are entering the space one after another; the SEC's stance is also loosening, beginning to support asset tokenization, and the spot ETF for SOL has already been approved, with AVAX and LINK likely to follow.

What does this indicate? Crypto assets are being repriced by the mainstream financial system and are no longer just a "fringe" thing.

The project side is actually more interesting. Those that can survive are basically in areas with real demand, such as finance and payments. After the Genius Act was introduced, a bunch of new digital banks emerged, directly interfacing with DeFi protocols; traditional assets like stocks and bonds are also gradually moving on-chain, and on-chain finance is likely to become the core settlement layer in the future.

The next two directions worth keeping an eye on are: **Privacy** and **AI**.

Privacy is a necessity—no one wants their wallet to be tracked casually; AI is the new narrative, with projects like MCP and x402 already using smart agents to manage on-chain assets. Web3-driven AI is freer and safer compared to centralized solutions, and it could be the next big opportunity.

In the end, the crypto circle is essentially a startup circle. Most teams consist of about ten people, the cost of trial and error is high, and failure is the norm. But the charm of Crypto lies in the fact that it gives everyone a chance to start from scratch - 99% of projects will fail, but that remaining 1% could truly rewrite the entire financial system.

So don't believe in the nonsense of "the bull market ends in fear". Historical experience tells us that the real peak often occurs when everyone is crazy; while when everyone is panicking and leaving, the market is actually healthier.

Currently, the macro environment is stable, funds are flowing back, and institutional participation is increasing. Although sentiment is low, the fundamentals are still intact. The crypto circle is just undergoing the growing pains of legalization. Once the regulatory framework is truly implemented, the market will naturally start.

Don't try to guess when the bull market will come, and don't blindly chase the hot trends. Staying in the market and continuously learning is the only way to get through the cycles.

If you want to avoid being swayed by emotions during this round of fluctuations and truly seize the opportunity, then focus on studying the fundamentals and find your own direction amidst the chaos.