I saw the news that Bitcoin has surged to $77,700, but I notice that this market seems like a fake rally. Data from analysts clearly indicate that new capital has not truly flowed in. Over the past 105 days, most investors have held their positions with an average cost of around $78,000, which means they are still about 5% in loss. This situation warns us to be cautious, as the market has been moving in the negative zone for 75 days, compared to the cycles in 2018 and 2022, where it took 5-9 months to reach the bottom.

Speaking of the mining industry, I see some really interesting changes. HIVE Digital Technologies raised $75 million to buy GPUs and expand data centers for AI. Although HIVE's stock dropped 11.5%, this is a sign of a major trend happening. Mining companies are shifting from the difficulty of Bitcoin mining to profit from AI, which generated 219% revenue in the latest quarter. Companies like MARA and CoreWeave are rushing to compete for a share of the AI Cloud market. This is a smart transition for the industry.

But if we talk about something that truly shocked the industry, it has to be the Zonda exchange, which cannot access 4,500 BTC worth $334 million in cold storage because the founder disappeared in 2022 without handing over the keys. The new CEO admitted to this incident, but customers panicked and withdrew 25,000 transactions in April, prompting Polish authorities to investigate. This is a classic lesson: if you don’t hold the keys yourself, the coins are not truly yours.

Another hot topic is the competition among stablecoins. Tether came out to help Drift Protocol, which lost $280 million in a hack, by injecting $150 million into the recovery fund. However, the condition was that Drift must switch to USDT instead of USDC from Circle, which was criticized for not acting quickly enough to address crimes linked to North Korea. Circle’s stock dropped over 10% before recovering. This is Tether’s strategic game, taking advantage of the crisis of its competitor.

The current crypto market seems lively, similar to the changes seen in the Indian stock market. Today, various assets are adjusting based on investor confidence. But in the crypto world, expectations are driving the market more than real fundamentals. The Fear and Greed Index remains at 21, indicating a high level of fear in the market.