The recent market volatility has a common underlying logic—risk aversion.

The primary trigger is the escalation of global geopolitical conflicts. Turmoil in Venezuela, Yemen, Iran, and other regions has led both traditional safe-haven assets and risk assets to seek new opportunities. In this context, cryptocurrencies, as decentralized assets, have attracted a significant amount of funds seeking safety.

More importantly, changes in US policy are playing a crucial role. The Senate has recently been pushing legislation that aims to significantly weaken the SEC's regulatory authority, which is a major positive for the crypto industry. The SEC's strict stance on the crypto market has long been a key factor suppressing market sentiment. If this policy is implemented, the regulatory outlook for the entire industry will improve substantially.

Continuous net inflows into ETFs are also fueling the rally. This indicates that traditional institutional investors are increasingly allocating to crypto assets. Data speaks volumes—when large sums of money keep flowing in, market confidence will be markedly different.

It is worth noting the rebound led by the Meme sector. These high-risk, high-reward assets are often the most sensitive to changes in market sentiment. When Meme coins lead the charge to new highs, it signals that market sentiment has shifted from panic to greed, a classic sign of risk appetite returning.

With geopolitical safe-haven demand, regulatory positive news, and net capital inflows stacking together, the confidence rebound in the crypto market is a natural outcome. How far this momentum can go in the short term remains uncertain, but at least the sentiment has been thoroughly reversed.