In general, looking back at 2024 and looking forward to 2025, I think it is appropriate to summarize it in four sentences: from grassroots to universal, from chaos to order, from depression to bubble, and from conservatism to reform. Next, I will share my thoughts and prospects with some events that I think are more representative.

The cryptocurrency market experienced a large pullback last week, which was generally attributed to the so-called "hawkish rate cut" by Federal Reserve Chairman Powell, which triggered concerns in the risk market about inflation and economic recession. However, according to the author's analysis, this is probably only a secondary factor causing capital panic. The real impact lies in the strong pressure on Congress's short-term spending bill initiated by Trump and Musk last Wednesday, and even the uncertainty caused by threatening to cancel the debt ceiling rule, which triggered the risk aversion of funds.

The reason for the recent market volatility is how to continue to capture incremental value after BTC prices break through new highs. My view is that the key is to observe whether BTC can take over from AI and become the core of driving economic growth in the new political and economic cycle in the United States under Trump's administration. The game here has already begun with the wealth effect of MicroStrategy, but the whole process is bound to still face many challenges.

I think the reason for the rise in MicroStrategy's stock price is the "Davis Double Click". Through the business design of financing the purchase of BTC, the appreciation of BTC is tied to the company's profits. The financial leverage obtained by combining the innovative design of traditional financial market financing channels enables the company to have the ability to achieve profit growth beyond the appreciation of the BTC it holds. At the same time, as the holdings expand, the company has a certain BTC pricing power, further strengthening this profit growth expectation.