Recently, there are always people saying "strict regulation is Favourable Information for the crypto world", but this statement does not hold up to scrutiny.

Looking back over the past few years, every time the policy tightens, $BTC can indeed still rise — but let's not forget, Bitcoin attracts institutional funds and hedging demand, and does not rely on retail investors at all. The real issue lies in the altcoin market, as this round of market sentiment has been delayed without the altcoin season, and the core problem is the interruption of new capital flow.

Strict controls in certain regions + mainstream opinion labeling cryptocurrencies as high-risk have directly cut off the channels for newcomers to enter the market. What remains in the market are experienced players who have gone through several cycles; everyone is cautious, who would take on those fundamentally weak altcoins? Without fresh blood coming in to take over, altcoins naturally continue to decline.

Looking ahead, $BTC might still reach new highs with its technical narrative and institutional backing. But what about altcoins? Most retail investors have their positions heavily invested in these assets, and in the case of liquidity drying up, even a rebound is hard to achieve. The market is accelerating its differentiation—top assets are thriving, while long-tail projects struggle to survive.

Don't be deceived by surface data; what really determines your profits and losses is the type of asset you hold.