First Financial recently reported some unsettling news—domestic tax authorities are significantly increasing their scrutiny of offshore income, with the backdated tax recovery period extending even to 2017. As we enter 2025, a large number of people have already received self-inspection notices, mainly focusing on the years 2022 and 2023.

For participants engaging in overseas trading or holding cross-border assets, the reality is now in front of them: they need to face tax declaration and supplementary payments. On-chain data has already sent signals—over the past week, large transfers on mainstream public blockchains have noticeably increased, especially the flow of funds from privacy wallets to compliant exchanges is accelerating. It appears that many are quietly adjusting their positions in advance of potential tax pressures.

Short-term impacts are inevitable. Market sentiment may be shaken, especially among traders who previously ignored tax issues; they might now tend to partially liquidate to cope, which could increase selling pressure and cause volatility. However, from another perspective, a correction may not necessarily be a bad thing.

From a long-term logical standpoint, regulatory normalization is beneficial for the market ecosystem—it will weed out speculative bubbles and highlight truly valuable projects. Assets with solid fundamentals will not lose growth potential due to compliance requirements. If a significant correction occurs, it could actually be an opportunity to accumulate at lower prices.

My personal strategy remains unchanged: build positions gradually at key moments, focusing on Bitcoin and some leading ecosystem projects, maintaining core holdings. The more complex the market, the more it tests patience—frequent sharp declines in a bull market are normal; only those who can hold on will be able to enjoy the final victory.

Overall, I remain optimistic about the market’s development in 2026. The key is to hold the line during this period of change, adjusting strategies flexibly without losing sight of the main direction.