Crypto Assets Market Pullback Analysis: Hacker Attacks and Geopolitical Impacts

Recently, the Crypto Assets market has experienced significant adjustments, primarily influenced by two factors:

Micro Level: Concerns Arise from Large Amounts of Funds Being Stolen

The consecutive hacking incidents involving Bybit and Infini have raised concerns in the market. A loss of $1.5 billion is a significant blow for Bybit and may impact its expansion plans. Although the core vulnerability lies in Safe rather than Bybit, recovering the losses may face legal challenges. For Infini, a loss of $50 million is an even greater blow for a startup.

These events have shaken traditional investors' confidence in the Crypto Assets industry, as evidenced by the outflow of funds from the BTC ETF. The market fears this may hinder the establishment of a friendly regulatory framework.

Macroscopic Level: Great Power Competition and Liquidity Migration

1. The U.S. fiscal deficit issue remains critical. The Trump administration responds through strategic contraction and industrial restructuring, focusing on the promotion of efficiency sector policies, feedback from macro indicators, and the progress of tax reduction policies.

2. DeepSeek's open-source weekly achievements impact the AI sector, reducing computing power requirements and affecting the valuations of AI-related companies in the United States.

3. The valuation of Chinese technology stocks reverts, and southbound funds flow into Hong Kong stocks. Pay attention to the changes in the Hong Kong dollar exchange rate reflecting the flow of funds.

4. The construction of the U.S. sovereign wealth fund is worth paying attention to, as it may obtain liquidity by repricing gold reserves.

5. The impact of tariff policies on inflation is limited, and the current CPI is at a controllable level.

6. There are divergences in the dollar's trend, which may present a pattern of strong first and weak later. A strong dollar is beneficial for the attractiveness of US bonds, while a weak dollar is favorable for the return of industries.

The current market has high uncertainty. Individual investors may consider a barbell strategy, allocating to blue-chip Crypto Assets and low-risk DeFi projects, while also taking small positions in high-volatility assets. Although there is pressure in the short term, no obvious structural risks have been observed, and positions can be built appropriately during excessive pullbacks.