The first news, from a survey by UBS, Reuters reported that some overseas Chinese family offices plan to increase the weight of cryptocurrency assets to 5% of their investment portfolios. A few years ago, cryptocurrency was just a “small trial run” in their eyes, but now it is seen as an “essential part of investment portfolios”. More importantly, they are still exploring various tools to optimize returns, which means that even the capital that values stability and inheritance the most is redefining the position of digital assets.
The second news is that Ethereum has reached a historic high, hitting around $4880 during trading and closing at around $4845. The driving force behind it is the speech by Federal Reserve Chairman Powell at the Jackson Hole Conference. He acknowledges that inflation risks cannot be ignored, but at the same time, he stated that he will not rashly tighten policies based solely on employment exceeding potential levels. If the labor market does pose a risk to price stability, the Federal Reserve may take preemptive action. The overall tone is interpreted by the market as dovish: a rate cut in September is almost certain, the US dollar weakens, US bond yields decline, and risk assets generally strengthen.
The breakthrough of Ethereum is a direct reflection of the rise in liquidity expectations and risk appetite.
One end is the allocation of traditional wealth, and the other end is the synchronous response of market prices. The former indicates a shift in cognition on the capital side, while the latter reflects the fermentation of emotions on the market side.
T
hese two pieces of news, on the surface, one is an adjustment in the allocation of family wealth, and the other is a temporary breakthrough in market prices. Put together, they convey the same signal: encrypted assets are completing their transition from the edge to the mainstream, gradually moving from speculation to consensus.
This is not the end, but the beginning of a new stage.
