The Investment Traps Behind the "Breaking the Circle" of Crypto Assets

The shift in the U.S. political landscape is reshaping the capital market structure. With Trump’s rise promoting pro-crypto policies, the traditional stock market is experiencing an unprecedented wave of "cryptocurrencyization." This radical policy shift not only changes the regulatory environment but also profoundly impacts investors' asset allocation logic.

**From Margins to the Center: The Crypto Wave**

Trump, self-proclaimed as the "first crypto president," immediately overturned previous strict regulations on digital assets upon taking office and instead pushed legislation supporting the crypto industry. More notably, he personally launched the TRUMP meme coin and publicly endorsed crypto investments multiple times. These high-profile moves quickly altered the market position of the crypto industry—from once being a "non-mainstream finance" to becoming a focus of Wall Street attention.

Under this trend, investor behavior has also changed. To date, over 250 listed companies have officially incorporated cryptocurrencies into their balance sheets, many adopting aggressive accumulation strategies by holding large amounts of Bitcoin and other digital assets to attract market attention. Even more concerning is that some of these companies lack genuine core business support, with their "business models" reduced to mere asset holdings and price speculation.

**Risks Spreading from Retail Investors to Institutions**

Unlike previous crypto bull markets primarily affecting individual traders, the current crypto craze is spreading through traditional financial channels like the stock market to a broader range of retail and institutional investors. This means that high-volatility assets once isolated from mainstream finance are now directly linked to the pensions and savings accounts of ordinary investors.

Lax regulatory environments, political momentum, and the aggressive "cryptocurrencyization" of listed companies have collectively created a new source of risk—investors are now facing unprecedented price volatility and valuation overextension risks. This is not only a sign of the crypto industry's prosperity but also a profound reshaping of the risk landscape across the entire capital market.