Recently, the Crypto Assets market has been buzzing due to the astonishing rise of shitcoin, but Tesla CEO Elon Musk's remarks have poured cold water on this celebration. He warned investors: "Do not let shitcoin become a 'fool's coin'." This statement not only reveals the bubble nature behind the current shitcoin market but also points the direction for Crypto Assets investors in 2025: staying away from pure concept speculation and instead following projects with a solid technical foundation is the key to navigating market cycles.

In November 2024, shitcoin became the focus of the crypto market with an astonishing performance. It soared from a low of about $0.1 to a high of $0.48, with a monthly rise of nearly 5 times. Although this surge allowed some investors to reap substantial short-term profits, the hidden risks behind it cannot be ignored.

Analyzing the recent rise of shitcoin, it can be observed that it is mainly driven by three short-term factors, rather than being based on any substantial technological advancements or practical applications:

First of all, the expectation that the U.S. may cut interest rates has brought good news for risk assets. The market generally believes that the Federal Reserve will start its rate-cutting cycle in November 2024, and this expectation has created a liquidity easing environment that makes high-risk assets, including Crypto Assets, favored by funds. Shitcoin has become the preferred target for speculative funds due to its low market value and participation threshold.

Secondly, the news that Trump may be elected president again has also boosted market sentiment to some extent. Although the impact of this factor is yet to be assessed, it has indeed injected a certain level of optimism into the market.

The combination of these short-term factors has driven the rapid rise in the price of shitcoin, but it also highlights its lack of long-term value support. Musk's warning precisely points out the core of this issue: investors should not be deceived by short-term price fluctuations, but should focus on the project's long-term value and technological innovation.

For cryptocurrency investors in 2025 and beyond, this dogecoin incident is undoubtedly an important warning. When choosing investment targets, more attention should be paid to the project's technical foundation, application scenarios, and long-term development potential, rather than blindly following market trends or short-term speculation. Only those projects that truly solve real problems and are supported by innovative technologies can stand firm in the market cycle and bring continuous returns to investors.

As the crypto market continues to mature, investors need to adopt a more long-term and rational perspective. The explosive rise of shitcoin may bring short-term gains, but true value investing will be the main theme of the crypto market's future. In this rapidly evolving field, only by focusing on technological innovation and practical applications can one find real opportunities in a volatile market.