Many traders are still holding on to the belief of a 40% retracement, but in fact, the market's gameplay has already changed. This time is truly different, and it can be explained from two dimensions.

First, let's look at regulation. At the beginning of 2026, the SEC made a major turnaround—transforming from a challenger into a teammate. After Paul Atkins took office, he directly removed the "key scrutiny" label on cryptocurrencies. The previous crackdown approach has become a thing of the past. The CLARITY Act further clarified how digital assets are classified, finally defining clear compliance boundaries.

As a result, large funds like pension funds and sovereign wealth funds have started to move. They increased their allocations from 1% directly to 5%. Such a level of capital entering the market is irreversible. The market's floor is rising higher and higher, and small adjustments are quickly absorbed by institutional buying.

Now, let's look at the technological side—AI Agents have completely rewritten the way on-chain activities are conducted. By 2026, over 60% of active addresses on the chain are no longer operated by humans, but by AI agents. They tirelessly mine, hedge, and operate seamlessly 24/7. The inefficient parts of the market are being filled one by one by AI, and liquidity efficiency has skyrocketed.

These two forces combined mean: the market structure has been upgraded. The old routines of large retracements are no longer effective, no matter how they are applied this time.