In-depth Analysis of the Fundamental Reasons Behind Current Crypto Assets Market Fluctuations: Value Growth Considerations After Bitcoin's New High

Recently, the Crypto Assets market has experienced significant Fluctuation, with Bitcoin prices fluctuating greatly between 94,000 and 101,000 dollars. This Fluctuation is primarily due to two factors:

First, Microsoft rejected a proposal at its annual shareholder meeting to invest 1% of its total assets in Bitcoin as a hedge against inflation. The proposal was put forward by a conservative think tank, and although the board had previously clearly recommended rejection, there was still some market expectation. After the proposal was officially rejected, the Bitcoin price briefly fell to $94,000, before quickly rebounding.

The price fluctuations triggered by this event reflect the current state of anxiety in the market, with major concerns about where the new growth point is after Bitcoin breaks its historical high. Recent signs indicate that some leaders in the crypto industry are trying to leverage the wealth effect of a certain trading platform to promote the financial strategy of allocating Bitcoin in the balance sheets of more publicly listed companies, in order to combat inflation and achieve performance growth, thereby increasing the adoption of Bitcoin.

However, it is not easy for Bitcoin to replace gold as a global store of value in the short term. There are two main reasons:

1. The value proposition of Bitcoin is top-down. Its acquisition relies on computational power competition, constrained by electricity and computing efficiency, which causes Bitcoin's distribution to concentrate in a few regions, hindering the spread of its value concept globally.

2. The regression of globalization trends and the challenges facing the dollar's hegemony. This may affect the dollar's status as the global trade settlement currency, thereby impacting the acquisition cost of Bitcoin priced in dollars and increasing the difficulty of promoting its value proposition.

These factors result in Bitcoin prices maintaining high volatility in the short term, making it unlikely to replace gold as a more attractive inflation hedge in the near future. Therefore, promoting Bitcoin allocation strategies to large listed companies with inflation resistance as the main selling point may not be very effective.

In contrast, some listed companies with sluggish growth may find it easier to gain recognition for their financial strategy of enhancing overall revenue and market value by allocating Bitcoin. In the new political and economic cycle, Bitcoin is expected to replace artificial intelligence as the new driving force behind the growth of the US economy.

Currently, the Buffett Indicator of the US stock market has exceeded 200%, indicating that the market is in a state of extreme overvaluation. As some tech giants and AI leading companies experience a slowdown in revenue growth, the US stock market may face pressure in the future. In this context, implanting a controllable economic growth driver into the US stock market is particularly important, and Bitcoin may become a good choice.

If small and medium-sized enterprises in the United States are allocating Bitcoin reserves on their balance sheets, even if their main business is affected by external factors, the government can drive the Bitcoin price by promoting policies favorable to Crypto Assets, thus stabilizing the stock market to a certain extent. This targeted stimulus is efficient and can even bypass monetary policy, making it less susceptible to constraints. Therefore, in the near future, this strategy is worth paying attention to for both the government and many small and medium-sized enterprises in the United States.