Bitcoin hit a new high of $97,000 per coin during yesterday's trading session. The logic behind this rally is actually quite clear — global regulation is undergoing a structural shift, from suppression to embrace, from ambiguity to transparency. Institutional funds are also starting to enter with real money.

Let's first look at the major moves in the US. The Federal Reserve announced the repeal of the 2023 crypto restriction order. What does this mean? Banks can now openly custody BTC, facilitate trading, and even issue related wealth management products. Giants like JPMorgan and Bank of America have already assembled crypto teams. Industry estimates suggest this could bring in hundreds of billions in capital inflows. But risks must also be recognized — the planned "Digital Asset Market Clarity Act" review scheduled for January 15 has been postponed. Exchanges like Coinbase feel the rules are flawed and have withdrawn from negotiations. The core disagreements revolve around how the SEC and CFTC will divide responsibilities and whether to impose restrictions on stablecoin reward mechanisms.

Taxation is also taking it seriously. Starting the 2026 tax season, Form 1099-DA will be used to report users' trading gains to the IRS. Here's a pitfall — if you haven't clearly reported your cost basis, you might be taxed as if your cost was zero, which could lead to higher taxes. Meanwhile, CRS and CARF mechanisms are also being activated, with tax information on cross-border transactions automatically exchanged among 48 jurisdictions. In other words, there's no place on Earth to hide money anymore.

Over in Europe, the UK is moving along the path of institutional compliance, with a preliminary framework already taking shape. Regulations are becoming smarter — not stifling innovation nor allowing unchecked risks. This dual logic of "regulation + openness" is spreading globally. Crypto assets are transitioning from the fringe to the mainstream of the financial system, which is the deep driver behind BTC's price appreciation.