Despite the prevailing doom and gloom in the crypto market, with the Fear and Greed Index dipping back into extreme fear territory and Bitcoin hovering around $100,000—a staggering rise from its launch price of $0.08—experts like Julian Kwan argue that the fundamentals point to a much brighter future. In a recent analysis shared on social media, Kwan dismisses the current sentiment as disconnected from the improving regulatory and macroeconomic landscape. He attributes market cycles to macro drivers and suggests this one is merely delayed, not derailed, setting the stage for an explosive 2026. This perspective is crucial for traders eyeing long-term positions in BTC and ETH, as it highlights potential entry points during this fear-driven dip.

Bullish Regulatory Developments Driving Crypto Growth

Kwan points out several key regulatory advancements that could fuel crypto adoption and trading volumes. In the European Union, the Markets in Crypto-Assets (MiCA) regulation is phasing in, providing much-needed clarity, even if not perfect, which is essential for institutional participation and growth in trading pairs like BTC/EUR and ETH/EUR. Meanwhile, Hong Kong has launched spot BTC and ETH ETFs, alongside more licensed venues and a stablecoin bill, potentially boosting liquidity in Asian markets. Japan is also expanding access, with major financial institutions planning 24/7 tokenized stock trading by 2026, which could create cross-market opportunities for crypto traders interested in tokenized assets. These developments suggest a supportive environment for higher trading volumes and reduced volatility, encouraging strategies like swing trading on BTC/USD pairs during regulatory announcements.

Real World Assets (RWAs) and Infrastructure Upgrades

A major pillar of Kwan's optimism lies in the rapid scaling of Real World Assets (RWAs). BlackRock's BUIDL fund has already reached billions in value, with tokenized Treasuries and credit products gaining traction. Infrastructure improvements, such as the DTCC and Chainlink pilot for fund data and JPMorgan's tokenized private fund flows, are enhancing on-chain plumbing. Additionally, initiatives like ISDA and Project Guardian are advancing tokenized bank liabilities for seamless settlement. For traders, this translates to growing opportunities in RWA-linked tokens, where on-chain metrics show steady climbs in tokenized treasuries, money market funds, and bonds, as reported in industry data trackers. Monitoring these metrics could reveal support levels around current BTC prices, with potential resistance breaks leading to rallies toward previous highs.

In the U.S., policy tailwinds are equally promising. The GENIUS Act has become law, establishing federal rails for dollar-on-chain settlements, which could supercharge the RWA flywheel. Kwan notes that with stablecoins previously earning zero percent now flowing into tokenized Treasuries, the impact could be massive if trillions are tokenized, as suggested by figures like Scott Bessent. The SEC is actively working to clarify what constitutes a security, reducing gray areas and attracting capital. This clarity is massive for trading, potentially leading to increased institutional flows into BTC and ETH, with trading volumes spiking on news catalysts. Traders should watch for correlations with stock market indices, as tokenized stocks could bridge crypto and traditional finance, offering hedging strategies during market consolidations.

Market Sentiment, Consolidation, and Macro Outlook

Currently, digital asset tokens (DAT) are trading around multi-navigator average values (MNAV), signaling a cooling of exuberance and the start of consolidation. Kwan emphasizes that most players are lightly leveraged, enhancing market resilience—a key factor for traders avoiding liquidation cascades. He remains bullish on strategies from experts like Michael Saylor and others, predicting they will outperform BTC and ETH soon. Hard numbers on RWA growth, with charts showing steady increases, support this view. From a macro perspective, aligning with Raoul Pal's insights, crypto follows the business cycle, which is extended but intact, positioning 2026 as a breakout year. For trading-focused investors, this means focusing on long-term holds in BTC and ETH amid extreme fear, with potential for explosive gains. Without real-time data, sentiment indicators like the Fear and Greed Index suggest buying opportunities, especially if BTC tests support at $90,000-$95,000 levels, with upside targets at $120,000 by mid-2026 based on historical cycle patterns. Institutional flows into RWAs could drive correlations with stock markets, where tokenized assets offer 24/7 trading advantages over traditional exchanges. Overall, this setup encourages diversified portfolios, blending crypto with emerging tokenized stocks for risk-adjusted returns.