This week, the movements in the encryption circle are indeed quite significant. Policies, institutions, and regulations are all making a strong push simultaneously, and it feels like the rhythm of the market has changed accordingly.

First, let's talk about the changes in the political aspect. Trump has newly appointed Bo Hines as the Executive Director of the President's Advisory Council on Digital Assets, and this guy will be working alongside the "encryption czar" David Sacks. In simple terms, this means that a direct channel to the White House for the encryption industry has been completely opened up. Compared to the previous confrontational stance, the signals of this policy shift are quite clear.

Then there is the fierce move from the institutions. MicroStrategy founder Michael Saylor recently wanted to do something - establish a framework for a U.S. Bitcoin reserve with a target valuation of $81 trillion, and he even publicly stated that BTC is the core solution to the national debt crisis. A few years ago, this might not have been taken seriously, but the situation is different now. MicroStrategy itself is also racing ahead: it has increased its holdings by 5,000 BTC, bringing its total holdings to over 444,000 BTC. This continuous increase in position has instilled confidence in many institutional investors.

The regulation in this area is considered a huge positive. SEC Chairman Gary Gensler confirmed his departure on January 20, and there are quite a few pro-encryption candidates emerging, with Paul Atkins being the most popular. The old routine of "regulating through enforcement" is likely to be replaced. In the short term, digital asset funds have indeed seen outflows of $1 billion due to the Federal Reserve's hawkish stance, and institutional risk aversion has increased. However, in the long term, how much incremental demand this shift in regulation can release remains to be seen.

Another point worth noting is El Salvador. They have doubled down on their daily BTC purchase plan and increased their holdings by 11 more coins to strengthen their sovereign BTC reserves. When a country plays like this, it indeed sets a benchmark for other countries and reflects the recognition of BTC's long-term value at the institutional and national levels.

The current question is, which of these major events has the most profound long-term impact on the market? Is it the institutional dividends brought by the historic shift in the regulatory framework, or the trend signals revealed by institutional investors represented by Saylor continuing to increase their investments? Or rather, what new heights can these three forces combined bring this market to? I would like to hear everyone's opinions.