Author: Stephen McBride, Chief Analyst at RiskHedge.com Translation: Shan Oppa, Golden Finance

The crypto market is at a turning point. Bitcoin (BTC) has stalled after breaking through $100,000. Meanwhile, many smaller cryptocurrencies have returned post-election gains.

However, in the crazy history of cryptocurrencies, we are about to get something everyone is begging for for the first time: Support. My research shows that this is a tailwind that drives the next rise in cryptocurrency prices. It has the potential to break the four-year cycle.

Source: TradingView

The major shift in Washington has turned cryptocurrencies from de facto illegal to prioritize

The list of positive regulatory changes we have seen over the past month:

Trump signed an executive order to lay the foundation for the regulatory environment that supports cryptocurrencies. The order ended Operation Stuck Point 2.0 and ensured cryptocurrency companies had access to banking services.

SEC announced the establishment of a "working group" to formulate new rules to clarify which tokens are securities and which are commodities.

The SEC also repealed SAB 121, a vague rule that makes it nearly impossible for banks to keep cryptocurrencies for their clients.

The "another" major regulator of cryptocurrencies, the Commodity Futures Trading Commission (CFTC), will be led by cryptocurrency advocate Brian Quintenz.

Parliament is likely to pass a stablecoin bill this year.

Trump's cryptocurrency Tsar David Sacks said he hopes to build the United States into "the cryptocurrency capital of the earth."

A Texas judge overturned sanctions on the privacy agreement Tornado Cash, marking a huge shift in the country towards more innovative regulations.

I can write about the next two pages the positive regulatory changes we have seen in the past month.

Regulatory clarity is the green light for Wall Street

The world's largest pool of funds can eventually enter the cryptocurrency space.

For example:

Chief Executive Officer Brian Moynihan last month when asked whether Bank of America would enter the cryptocurrency business. Moynihan) said, “If the rules were introduced and made it something that could really do business, you would find it would be hard for the banking system to get in. ”

Wall Street is finally ready to invest. Entrepreneurs can finally start businesses. As investors, we will take advantage of this huge shift by continuing to hold the best cryptocurrency businesses.

Most investors don't understand how destructive the storm of regulation is. Now, they underestimate the importance of these changes to the future of cryptocurrency. The United States is the most powerful entity in the world, and it is moving from opposing cryptocurrency to supporting cryptocurrencies. Investors are blind to it.

For four years, every time we talk about crypto regulation, it turned out to be bad news. "Oh, great, another three-letter agency sued a deal. ”Now, the situation is just the opposite.

Just as market sentiment is at its peak, the biggest catalyst in cryptocurrency history is coming.

memecoin's peak is coming. Next is the booming development of crypto innovation in the United States.

The door to regulation has finally opened. Wall Street giants will soon step in.

"Traffic" is why Bitcoin still leads this bull market to this day

BlackRock's Bitcoin ETF—iShares Bitcoin Trust ETF (IBIT) - recommended since a year agoIt has absorbed US$40 billion since its release.

Small cryptocurrencies do not have these funds. They are running out of money. Most are retail investors, buying several hundred dollars each time.

Large cryptocurrency funds (which have driven the market in the past) have been reluctant or unable to raise funds due to regulatory resistance in the past few years. This means that there are few bidders for small cryptocurrencies, even those with good fundamentals.

This situation is changing as regulatory regulations become increasingly clear. I heard that dozens of funds are actively raising funds. Their goal is to end the quarter, which means by early summer we may see a large amount of new capital coming into the market.

Regulatory clarity could break the four-year cycle

Bitcoin has led the market since cryptocurrency prices bottomed out at the end of 2022. By this point in the four-year cycle, capital flows will begin to flow in as smaller tokens. This time, they are still ahead of us. In a normal four-year cycle, we will prepare for the 2026 callback. Washington's cryptocurrency turn extends the cycle. These ETFs bring tens of billions of dollars in new investor capital to cryptocurrencies. Changes in Washington, D.C. will bring trillions of dollars.

Our research shows that we are in this cycle earlier than the calendar shows. By 2025, the price of Bitcoin could be as high as $250,000.

Most investors are still looking back, and years of regulatory misconduct have left them with psychological shadows. They don’t see what’s ahead of us: America is about to become the world’s crypto innovation center.