Zeuspace founder and CBCX Exchange investor Dr. Andy Cheung was invited to attend the Chain Valley public class, where he shared some observations from his team on current market concerns such as gold, Bitcoin, and Hong Kong’s new Web3 policies. The following is an excerpt of the core viewpoints from this public class.
Regarding the market pattern: Institutional cost line may become an important pricing reference
In his sharing, Dr. Andy Cheung mentioned a set of data: the cumulative unrealized losses of global digital asset institutional holdings exceed $25.00B. The cost distribution of some leading institutions is in different ranges such as $68,000.00 and $64,000.00, while the comprehensive shutdown price of the miner group is around $58,000.00. He believes that in the current market where there is a lack of clear industry cycle guidance, the cost structure of institutions may provide a pricing reference perspective that is different from technical indicators. “We are not saying that these positions will definitely be touched, or that they will definitely rebound after being touched. However, when market sentiment is extremely pessimistic, these cost ranges that have been repeatedly verified often become the positions that professional investors pay attention to.”
Regarding gold and Bitcoin: The logic remains unchanged, and the rhythm needs to be prudent
Regarding the recent situation where gold has broken through historical highs and then fluctuated sharply, and Bitcoin has repeatedly oscillated around the $70,000.00 level, Dr. Andy Cheung believes that the core logic of both has not fundamentally changed. The core driving force of gold is still geopolitics, the credibility of the US dollar, and liquidity expectations. As long as these three pillars do not experience a directional reversal, the strong pattern of gold will not easily end. However, regarding whether it is suitable to chase highs at the current position, he suggests remaining prudent, and a more rational approach is to wait for a technical correction and build positions in batches.
The long-term narrative of Bitcoin is still the consensus evolution of “digital gold”. He believes that if the market size of crypto assets can reach half of that of gold in the future, there is a lot of room for imagination in the price of a single Bitcoin. However, the premise is that Bitcoin is truly regarded as “digital gold” by mainstream capital, rather than “high-risk volatile assets” in the balance sheets of current institutions. “Looking at it from a cycle of several years, our attitude towards Bitcoin is still positive. However, the short-term market does face multiple pressures such as liquidity exhaustion and institutional position adjustments, and this tug-of-war may continue for some time.”
Regarding Hong Kong’s new policies: A “window period” for compliance breakthroughs
Consensus Hong Kong 2026 has just concluded, and the Hong Kong government has set the tone for 2026 as the “year of strong execution”. Dr. Andy Cheung believes that Hong Kong is betting on a very clear ecological niche—the “most trusted” compliant Web3 center. He sorted out three substantive policy adjustments that have recently been implemented: 1) BTC/ETH margin loans have been approved, and compliant funds can obtain legal currency liquidity by staking mainstream coins; 2) Perpetual contracts are open to professional investors, and restrictions on derivatives tools have been relaxed; 3) The affiliated market maker rules have been relaxed, and the access conditions for market makers have been further optimized. In addition, stablecoin licenses are expected to be issued in the first batch in March 2026, and the scale of tokenized gold has doubled. “The United States is deeply tied to finance and entities, and Hong Kong’s advantage lies in offshore finance and ‘one country, two systems’. The window has been opened, and how big it can be opened determines Hong Kong’s future position in this track.”
Summary
Should you buy the dip, or continue to wait? Dr. Andy Cheung’s sharing did not provide a black-and-white answer. What he provides is an analytical framework that can be executed regardless of whether the market rises or falls: understand the cost structure of institutions, respect the transmission law of liquidity, and pay attention to the time window of compliance trends. These three things may be more important than predicting tomorrow’s ups and downs.
Bitcoin at $70K: Analyzing Institutional Cost Lines, Liquidity Dynamics, and Regulatory Catalysts
Bitcoin’s current consolidation around the $70,000 mark represents more than a simple price plateau—it reflects a complex confluence of institutional positioning, liquidity dynamics, and evolving regulatory frameworks. As Zeuspace founder Dr. Andy Cheung highlighted in his Chain Valley public class, the current market lacks clear cycle guidance, making alternative reference points critical for informed decision-making.
Institutional Cost Structure as Market Anchors
The most significant insight from Cheung’s analysis is the revelation that global digital asset institutions are sitting on cumulative unrealized losses exceeding $25 billion, with cost bases clustered around $68,000 and $64,000. These institutional cost ranges, alongside the miner shutdown price of approximately $58,000, represent critical technical levels that may override traditional chart patterns in the current environment.
For experienced investors, this cost structure analysis provides a valuable framework for understanding potential support levels. While these aren’t infallible floor indicators, they represent zones where significant institutional interest may emerge to defend positions. The $64,000-$68,000 range, in particular, should be monitored closely as it may serve as a magnet during market stress.
Importantly, this institutional cost perspective offers a counter-narrative to purely technical analysis. In a market where cycle identification has become increasingly complex, understanding where major players have their break-even points provides a fundamental anchor for valuation.
Gold-Bitcoin Parallel and Liquidity Considerations
The parallel drawn between gold and Bitcoin market dynamics is particularly relevant for investors seeking broader context. Gold’s recent volatility, driven by geopolitical tensions, US dollar credibility, and liquidity expectations, mirrors Bitcoin’s own market pressures. This suggests that macro factors remain primary drivers for both assets, despite their different risk profiles.
Cheung’s caution about chasing highs in either market is well-founded. For Bitcoin, this means approaching current levels with measured expectations rather than assuming continuation of upward momentum. The suggestion to “wait for technical correction and build positions in batches” reflects a prudent approach that respects market volatility while positioning for potential upside.
The long-term “digital gold” narrative remains intact, but with an important caveat: Bitcoin’s price appreciation potential is contingent on mainstream capital viewing it as a store-of-value asset rather than a speculative instrument. This distinction is critical and will be tested as market conditions evolve.
Hong Kong’s Web3 Policies: The Compliance Catalyst
Perhaps the most significant development highlighted is Hong Kong’s concerted effort to establish itself as the “most trusted” compliant Web3 center. The three policy adjustments—BTC/ETH margin loans, perpetual contracts for professional investors, and relaxed market maker rules—represent meaningful steps toward institutional integration.
The expected issuance of stablecoin licenses in March 2026 and the doubling of tokenized gold scale further signal Hong Kong’s commitment to building a comprehensive Web3 ecosystem. For investors, these developments suggest a potential inflection point in institutional adoption, particularly for projects that prioritize compliance and operational transparency.
Hong Kong’s strategic positioning leveraging its offshore finance expertise and “one country, two systems” framework creates a unique competitive advantage. This regulatory clarity may attract risk-averse institutional capital that remains on the sidelines in more ambiguous jurisdictions.
Strategic Framework for Navigating Current Volatility
Rather than providing simple “buy or sell” signals, Cheung’s analysis offers a robust analytical framework for experienced investors:
- Cost Structure Awareness: Monitor institutional cost ranges as potential reference points for market direction.
- Liquidity Transmission: Recognize that market liquidity conditions will heavily influence short-term price movements.
- Regulatory Timing: Position for potential adoption waves driven by regulatory clarity, particularly in jurisdictions like Hong Kong.
This framework acknowledges the complexity of current market conditions while providing actionable insights. It suggests that tactical positioning around key cost levels, combined with awareness of macro liquidity conditions and regulatory developments, may be more effective than simple trend following.
Investment Recommendations
For investors navigating Bitcoin’s current volatility around $70,000:
- Strategic Accumulation: Consider scaling into positions as Bitcoin approaches institutional cost ranges, particularly the $64,000-$68,000 zone.
- Monitor Miner Economics: The $58,000 miner shutdown price represents a critical level; breach could trigger significant market stress.
- Hong Kong Opportunity Exposure: Identify projects positioning themselves for Hong Kong’s compliance ecosystem, particularly those with clear regulatory pathways.
- Liquidity Buffer: Maintain dry powder to capitalize on potential liquidity-driven drawdowns, as institutional position adjustments may continue.
- Long-term Narrative Focus: Separate short-term trading from long-term investment thesis—the digital gold narrative remains intact despite short-term volatility.
The current market environment demands a nuanced approach that balances technical analysis with fundamental understanding of institutional positioning and regulatory developments. By incorporating these perspectives, experienced investors can better navigate the volatility while positioning for the next market cycle.