This Week's Crypto Market Highlights

New Developments in US Encryption Policy

Trump signed an executive order to officially establish a strategic reserve of Bitcoin and digital assets. The reserve funds mainly come from the proceeds of criminal or civil asset forfeiture, and the market's reaction has been relatively cautious. Analysts believe that in the future, the reserve scale may be further expanded through congressional legislation.

The White House is set to hold a highly anticipated encryption summit, with about 25 industry representatives invited to attend. 29-year-old Bo Hines is in the spotlight as the leader; he has been investing in the crypto market for nearly a decade before joining the government.

States have varying attitudes towards Bitcoin's strategic reserve. Surprisingly, some Republican-controlled red states expressed opposition. Currently, Arizona is expected to be the first to pass related legislation.

Market Trend Analysis

Recently, the market has experienced significant fluctuations. Some analysts believe that there are currently few negative factors, and investors can pay attention to the positive news that may come on March 7.

Renowned trader Arthur Hayes stated that the crypto market is still in a bull market cycle, and the worst-case scenario for Bitcoin could pull back to $70,000. He predicts that Trump might artificially create an economic recession, forcing the Federal Reserve to cut interest rates.

In such a volatile market, it is difficult to make long-term profits just by luck. Investors need to develop specialized trading strategies to survive and profit in extreme conditions.

The Integration of AI and Encryption

The decentralized AI project Prime Intellect has attracted investments from many industry leaders, including founding members of OpenAI and former AI directors of Tesla.

ElizaOS and Swarm AI are engaged in a route dispute in the trillion-dollar track. The former lowers the development threshold through modularization, while the latter emphasizes collective intelligence. This confrontation essentially reflects the game between the spirit of Web3 and the centralization of AI.

There is a view that Bittensor has the potential to become the "Bitcoin" of the AI track. Regardless of its ultimate success or failure, it has already sparked important discussions about AI governance, accessibility, and the future of innovation.

New Trends in the DeFi Ecosystem

Aave has proposed an update to its token economic model and plans to launch a buyback program. This will not only enhance its competitive advantage in liquidity, but also drive DeFi towards a sustainable value capture model.

Jupiter is trying to regain market confidence and shake off the impact of the Libra scandal through various strategies such as ecological expansion, token buybacks, and product iterations.

The decentralized exchange Hyperliquid has become an on-chain "whale casino", with a trading volume surpassing one trillion dollars, capturing sixty percent of the perpetual contract market share, and an average daily clearing amount of 400 million dollars.

Other Important Developments

• Eric Trump, the son of Donald Trump, calls on the traditional financial industry to embrace encryption as soon as possible, or it may face extinction.
• Sources revealed that Jump is restarting its US encryption business, accelerating trading and expanding recruitment.
• Safe{Wallet} updates on the hacker incident investigation, confirming that the North Korean hacker group TraderTraitor is the mastermind behind it.
• Berachain co-founder expressed regret for selling too many token supplies to VCs and is currently hoping to minimize community dilution.