The "happy" in the crypto market fades away, shifting from emotion-driven to rational reversion

BrokenDAO · 2026-02-22T05:11:45+00:00

Recently, the cryptocurrency market sentiment has cooled down, with Bitcoin prices continuing to decline, and investors are beginning to analyze market prospects rationally. Meanwhile, the US crypto policy is progressing slowly, and the industry regulatory framework needs improvement. The Federal Reserve's new measures are promoting financial integration, but it has not been fully realized yet. Overall, the crypto market is transitioning toward a mature stage.

BrokenDAO

2026-02-22 05:11:45

Abstract generation in progress

The recent cryptocurrency market has shown a clear shift, with market participants’ previous enthusiasm gradually fading. This change is reflected not only in price fluctuations but also in a profound adjustment of the industry’s overall mindset. From fervent optimism to cautious assessment, the crypto ecosystem is undergoing a rebalancing of emotions and reality.

Bitcoin Faces Pressure and Pullback, Investor Sentiment Significantly Cools

Bitcoin has been steadily declining recently, with market enthusiasm noticeably waning compared to its peak periods. The once-hopeful upward momentum is weakening, indicating that excessive optimism in the market is dissipating. Investors are no longer blindly chasing gains but are beginning to evaluate market prospects more rationally.

Slow Policy Progress and Regulatory Frameworks Await Improvement

The CLARITY Act’s progress in the U.S. Senate has stalled, with no consensus reached among parties. This means regulatory rules for cryptocurrencies remain uncertain, and the legal framework for industry development still needs further refinement. Policy uncertainty is one of the key factors cooling market sentiment.

Federal Reserve’s New Measures Test Financial Integration

The Federal Reserve plans to establish special accounts for crypto and fintech companies, which could simplify access to the U.S. payment system. However, these accounts do not offer interest or emergency liquidity support, indicating that deep integration of crypto assets with traditional financial systems is still in progress, and full integration has not yet been achieved.

Market Matures as the “Hype” Era Ends

The transition from a bubble phase to a mature phase is underway. The decline in market enthusiasm, coupled with increased regulatory attention, reflects the industry’s move toward standardization. The crypto market is no longer driven solely by emotion but is gradually returning to fundamentals and policy-based rational analysis.

Disclaimer: This opinion is for reference only and does not constitute investment advice.

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