The recent "dual time zone flash crash" phenomenon in the cryptocurrency market highlights the current structural problems in the market. Through in-depth analysis of transaction data and market microstructure, the deep mechanism behind this phenomenon is revealed.
First, the flash crash during the Asian session is closely related to the region’s unique trading ecology. According to Binance data, Asia accounts for about 65% of global cryptocurrency derivatives trading volume, of which high-leverage trading accounts for more than 40%. This high leverage ratio makes the market extremely sensitive to price fluctuations.
Especially in Japan and South Korea, due to local regulatory restrictions, the scale of over-the-counter (OTC) transactions is huge. These decentralized transactions often lack effective price discovery mechanisms and are prone to cause chain reactions. For example, some Asian OTC traders recently reported that a single large transaction could cause a 5-10% price shock.
The rise of AI agent track
AI XBT’s Upward Trend
Despite the overall market downturn, some tracks are still rising against the trend, especially the AI agent track. In the blockchain thinking channel, we have mentioned this track many times and recommended some targets. Take AI XBT as an example. As an AI agent of aggregated QL, it has shown a strong upward trend and its market value continues to expand. If you have not yet held a position, it is recommended to buy at the bottom of the channel.
Other AI track targets
Another noteworthy index is VIRTUAL, which is also creating higher highs and lower lows. Although there is no clear upward channel, it also shows a strong trend. You can enter the market appropriately when its price pulls back to the support level.
AI16Z’s strong performance
AI6Z is one of the most outstanding stocks at present. It has skyrocketed recently and there is no obvious correction pattern. If you don't hold a position, it is recommended to try to enter the market when the hourly level pullback occurs, such as around 1U. It may continue to rise in the future. There are many positive news releases recently.
Finally, it is worth noting that the U.S. Treasury Department and the Internal Revenue Service jointly released the latest broker interpretation, which may have a certain impact on the DeFi field.
The IRS requires "DeFi brokers" to collect user transaction information.
The regulation is expected to affect 875 DeFi brokers and 2.6 million taxpayers.
What is certain at present is that basically all DeFi projects need to conduct KYC, unless they do not involve US business or customers at all. And brokers also need to pay taxes.
Paying taxes is not a big issue, but what is more important is that DeFi needs to provide KYC, especially projects run by Americans or operating in the United States.
This means that KYC information will need to be provided when trading on platforms such as UniSwap, which may affect the liquidity of the crypto market, especially DeFi.
If the bill is approved, some small and medium-sized altcoin projects will be most affected, and mainstream coins will also be affected to a certain extent, especially those projects that focus on the chain.
This interpretation will be transitioned in 2025 and 2026 and officially implemented in 2027.
Affected by this, both the U.S. stock market and the crypto market fell yesterday, with Bitcoin falling below $95,000, but there was no panic in the market for the time being.
Because the specific implementation of this bill will not be until 2027, and after Trump's transfer of power, the market generally believes that Trump has the ability to withdraw this interpretation.
If this bill is eventually implemented and not stopped, it may deal a significant blow to the crypto industry.
We can focus on whether Trump will withdraw the bill after taking office.