Mid-year review of the crypto market: regulatory differentiation, institutional layout and retail investors’ breakthrough

Halfway through 2025, the crypto market has once again shown its variability and complexity. Bitcoin once reached the $100,000 mark, then fell to $70,000, and then returned to over $100,000. Ethereum prices have been stuck around $3,000, and Meme coins are still hot from time to time. Topics such as RWA, stablecoins, and decentralized exchanges have also been on the hot search list.

On the Twitter Space of "2025 Crypto Market Mid-Year Summary: The Survival Rules of Chives' Game" held on June 12, three guests who have been deeply involved in the industry for a long time - Chloe from HTX, BB Labs Founder Mr. J, and independent researcher Yun Tiezhu - discussed multiple directions such as market trends, policy environment, and investment sentiment.

The following is a compilation and sorting of the content of this interview.

1. Behind the ups and downs of Bitcoin: funds, policies and cognition

Brother Tiezhu believes that the biggest change behind this is that investors have begun to re-examine asset allocation in the context of the increasingly serious US fiscal deficit. "If you are worried that the US dollar will continue to depreciate and US debt will be difficult to support the fiscal situation, then what else can withstand it besides gold? Bitcoin naturally becomes a safe haven alternative." He said.

Mr. J interpreted the inflow of institutional funds from another perspective. He mentioned, "Now more and more listed companies and funds use stocks or assets in their hands to borrow funds through a rolling mortgage method, then buy Bitcoin, and then use Bitcoin as an asset to participate in more financing." The essence of this method is to introduce the leveraged gameplay in traditional finance into the field of crypto assets. "The first wave of funds has come in, and the next is the amplifier."

Chloe reminded that although the passage of ETFs and the liberalization of policies have brought positive effects to Bitcoin, part of the recent rise is still dominated by speculators. "Many of them are high-leverage and option-driven markets. After the volatility is amplified, it may not be easy to reach new highs in the short term."

Second, Ethereum: The value is recognized, but the price is still spinning

Chloe explained that the ecosystem of Ethereum on the chain has begun to attract more attention from traditional financial institutions. For example, projects such as Spark and Maple all have traces of cooperation with mainstream US investment banks. "These projects are not just slogans, but are actually providing financial services." Mr. J also mentioned that Ethereum's underlying technology has become the default choice for traditional giants. "You can see that whether it is Visa, stablecoin issuers, or even some old financial companies, the first choice of underlying technology is still Ethereum. This is not a coincidence." However, Tiezhu pointed out that despite institutional recognition, the lack of liquidity is still the key to the current ETH price not going up. "The problem with Ethereum is not its perception, but the overall funding situation in the market. When broad liquidity is tight, people are more willing to hold on to leading coins like Bitcoin rather than increase their holdings of ETH."

3. The structural market behind the popularity of Meme coins

Chloe analyzed, "Everyone is more realistic in this cycle. They all look at whether there is real income and whether there is actual business." She cited several projects that performed well, such as Maple and Hype. "We invested heavily in these projects when they were at the bottom, and now they have quadrupled or quintupled."

Brother Tiezhu pointed out from a broader perspective that the market is moving towards a structured direction. "Liquidity tends to be concentrated, and funds will not be evenly distributed to all tokens." He believes that projects with actual trading scenarios, user bases, and repurchase or profit models are more likely to be favored by funds.

He also mentioned some new directions worthy of attention: decentralized contract exchange (Proper DEX), RWA asset mapping projects, innovative stablecoins (such as the interest-supported USD version) and AI+Crypto fusion projects.

Fourth, changes in geopolitical strategies brought about by regulatory differentiation

One ​​of the most controversial topics in 2025 is the global differentiation of regulatory policies. The United States has begun to relax crypto regulation and clearly supports the legal development of ETFs, DeFi, and stablecoins; while Singapore and other places have tightened regulatory requirements for crypto exchanges, causing many projects to go overseas or transfer their registered places.

Chloe pointed out from an institutional perspective: "The chairman of the US SEC has repeatedly emphasized recently that DeFi is part of the future of finance, which actually opens up the possibility of legal compliance for many projects." She also mentioned that some projects have begun to try to incorporate contract transactions into the compliance framework.

Brother Tiezhu added from a macro perspective that Singapore's tightening regulation has a certain relationship with its participation in the rating of the International Anti-Money Laundering Organization. "This is not suppression, but the hope to avoid becoming an arbitrage transit station." He predicted that in the future, global regulation will gradually move closer to the United States, rather than split.

V. Ordinary investors: It is more important to see yourself clearly than to predict the market

Chloe suggested that ordinary users adhere to the strategy of "adding positions when the market is low and reducing holdings when the market is high." "Especially in the stage of great uncertainty, options, financial management, and stable currency combinations can be tried moderately."

Brother Tiezhu said, "Judging bulls and bears is not the business of retail investors. Doing right-side transactions and waiting for the market to move out of the trend is a safer strategy for ordinary people." He emphasized that the market has not entered a clear right stage, but is more of a shock range.

"When the macroeconomic situation is clear, when fiscal and liquidity policies turn, that is the signal to enter the market."

Conclusion: The market is changing, and cognition must change with it

2025 is a year full of changes. It is not a node where a single narrative breaks out, but the beginning of the interweaving of various forces and the reconstruction of power. The rise of Bitcoin is no longer a simple cycle drive; the story of Ethereum cannot be leveraged by a few upgrades; supervision is no longer a flood beast, but a realistic threshold that industry participants must face.

For retail investors, the market is difficult to predict, but investment strategies and risk management can be controlled. Striking a balance between cognition, rhythm and tools is an ability that each of us needs to cultivate.

Live playback link: https://twitter.com/i/spaces/1yNGaLOVekWKj

Note: This article is based on the live discussion of the guests and does not constitute investment advice. The market is risky and decisions should be made with caution.