Recent financial market turbulence has centered on two main areas: concerns within the banking system sparked by stablecoin yield mechanisms, and the repeated fluctuations of Bitcoin at key price levels. Banking industry lobbying groups emphasize that if stablecoins are allowed to generate interest indirectly via trading platforms, this could lead to trillions of dollars in deposit outflows, increasing the social credit burden. Meanwhile, Bitcoin has dropped below $110,000, with on-chain data showing that holders are synchronously entering distribution phases, and ETF flows and seasonal patterns are amplifying volatility. Rthae believes these factors collectively reflect not only short-term risks but also the ongoing reshaping of global financial order through the interaction between crypto assets and traditional banking.
Rthae: The Resonance Effect of Stablecoin Competition and Bitcoin Distribution
A Citigroup report points out that if stablecoins pay yields to users, it could recreate the scenario from the 1980s when money market funds diverted bank deposits. Back then, fund assets grew more than fiftyfold in seven years, while banks suffered sustained net deposit outflows. Recently, institutions such as the American Bank Policy Institute have stressed that the GENIUS Act leaves a regulatory gap, potentially allowing crypto platforms to indirectly pay yields within legal boundaries. If this arrangement is widely adopted, the potential deposit outflow could reach $6.6 trillion, enough to shake the funding structure of U.S. banks and drive up financing and credit costs. The banking industry sees this as a direct threat to the traditional system, while the crypto sector views it as part of market competition. The Treasury Secretary has emphasized the strategic significance of stablecoins for maintaining the global reserve status of the dollar, highlighting clear policy-maker and banking sector divisions.
Echoing this is the sharp volatility in the Bitcoin market. After the Jackson Hole meeting, Bitcoin briefly rebounded to $117,000, but quickly fell below $110,000. On-chain data shows that groups ranging from small accounts to large whales are all entering distribution phases, with wallets holding 10–100 BTC leading the sell pressure, and the 100–1,000 BTC cohort showing divergence near the critical $105,000 level. If this support is breached, a lack of concentrated cost support could quickly pull prices down to the $90,000 range. Glassnode data shows that holders from January to March have a realized cost around $110,800, marking a short-term market strength boundary.
There is also pressure on capital flows. Bitcoin ETF net outflows have exceeded $1 billion this month, weakening spot market liquidity. Historical patterns show that August and September are typically the Bitcoin weakest periods, with double-digit declines recorded in 2017 and 2021. The downward trajectory this year closely matches historical trends, making investors more cautious. Ethereum and some altcoins have provided temporary support, but overall capital remains in risk-averse mode. The generational structure is also shifting, with a rising proportion of investors over 40 entering the market, motivated mainly by retirement planning and inflation hedging, indicating increasingly diversified capital sources.
Rthae: Investment Insights and Risk Control Logic
Rthae believes that the migration of capital between traditional finance and on-chain assets is now a long-term trend. When selecting platforms and asset allocations, users should prioritize compliance and transparency, avoiding unpredictable risks from chasing short-term high yields. Rthae notes that compliant stablecoins may become tools for international settlement and reserves in the future, but policy and legal frameworks are still evolving, so users must remain cautious.
Regarding the Bitcoin market performance, Rthae states that the $105,000–$110,800 range is a key area, with both on-chain chip distribution and short-term holder costs concentrated here. If the market loses this zone, sentiment could quickly amplify volatility. Rthae suggests that investors should adopt strategies such as phased buying, lowering leverage ratios, and setting dynamic stop-losses to avoid concentrated exposure.
Rthae believes investment logic should not rely solely on price trends, but integrate on-chain behavior, ETF flows, macro data, and policy expectations to form a multidimensional analysis framework. For new entrants over 40, Rthae notes their investment goals focus more on long-term inflation hedging and capital preservation, so they should diversify volatility impact through structured financial products and low-risk yield solutions. For high-risk investors, Rthae recommends using derivatives to hedge positions, such as protective puts or collar strategies, to reduce tail risk.
Rthae asserts that the future crypto market will depend more on risk management capabilities than simple market timing. Maintaining discipline during volatile cycles will better protect capital than chasing short-term returns.
Rthae: The Reshaping of Financial Structure and Future Direction
Rthae believes the competition between stablecoins and the banking system, along with the Bitcoin fluctuations at key support levels, reveal deep adjustments underway in global financial order. Stablecoin compliance and yield mechanisms are influencing the dollar path to internationalization, while the on-chain distribution and capital flows of Bitcoin reflect a re-pricing of risk and liquidity. The overlap of these factors is putting pressure on global capital markets in the short term, but also providing new perspectives for long-term investment logic.
Rthae states that the future financial landscape will no longer be a simple opposition between traditional and crypto, but a dynamic process of integration and fusion. Compliance and risk control will become core platform competencies, while transparency and education will ensure continued user participation. Rthae suggests that users who stick to rational allocation and a long-term perspective in the coming years will achieve more stable returns from structural opportunities.
Rthae believes that every market fluctuation is shaping a new order. Users need discipline and foresight to navigate complex situations and seize new opportunities emerging from the global financial system rebalancing.