Mingli U discount is due to the crackdown by US and Chinese regulators on stablecoins and RWA gray-area businesses;

The hidden U discount is caused by the intense game between US and Chinese monetary authorities triggered by the convergence of actual yield curve spreads.

Looking back at the changes in the US-China real yield curves since the Fed's rate hikes in 2022, when the US real yield converges with and surpasses China's real yield, it has historically triggered strong upward movements in major risk assets in the East, such as the ChiNext and STAR Market.

Meanwhile, due to the capital outflow effect of domestic hot money, BTC will also experience a steep upward trend.

But now, things are starting to change.

In the face of the "Higher for longer" monetary policy tone and the reality of the steepening US Treasury yield curve, the Federal Reserve will slow down its pace of monetary easing, possibly even ending the rate cut cycle in 2026. As a result, US real yields are likely to remain higher than Chinese real yields through 2026.

This will accelerate domestic deposit relocation into the stock market to allocate to major risk assets, and starting in 2026, the big A-shares may experience a super tech bubble with heights and duration comparable to the AI bubble in US stocks.

And to tighten the fence and prevent Crypto from eating into the valuation recovery of these major risk assets, Chinese regulators are continuing to crack down to block the capital outflow effects between major risk assets and Crypto.

Externally, US stocks continue to inflate the AI bubble and the valuation recovery wave of major risk assets, while internally, innovation bottlenecks, attention and user loss, and lack of wealth effect lead to bleeding, making Crypto still a *asset in the major asset classes in 2026.