Dr. Andy Cheung, founder of Zeuspace and investor in the UK-based CBCX exchange, was invited to speak at Chain Valley Public Class, sharing insights from his team on current market topics including gold, Bitcoin, and Hong Kong’s new Web3 policies.
Below are the key takeaways from this public lecture.
Regarding market dynamics: Institutional cost lines may become important pricing references.
Dr. Andy Cheung referenced a set of data during his presentation: the cumulative unrealized losses of institutional holdings of digital assets globally have exceeded $25 billion. The average entry prices for some leading institutions range between $68,000, $64,000, and other levels, while the combined shutdown price for miners is approximately $58,000.
He believes that, in the absence of clear industry cycle guidance in today’s market, institutional cost structures may offer a pricing reference perspective distinct from technical indicators.
“We’re not saying these levels will definitely be touched, or that they will necessarily rebound after being touched. But during periods of extreme market pessimism, these cost zones—repeatedly validated over time—often become areas of interest for professional investors,” said Dr. Andy Cheung.
On gold and bitcoin: the logic remains unchanged, but the timing requires caution.
Regarding the recent surge of gold to a new all-time high followed by increased volatility, and Bitcoin's prolonged struggle around the $70,000 level, Dr. Andy Cheung believes the fundamental logic underlying both assets has not changed.
The core drivers of gold remain geopolitical factors, confidence in the U.S. dollar, and liquidity expectations. As long as these three pillars do not undergo a directional reversal, gold’s strong trend is unlikely to end easily. However, regarding whether the current level is suitable for chasing prices, he advises caution and recommends a more rational approach: waiting for technical pullbacks and building positions in stages.
The long-term narrative for Bitcoin remains the evolving consensus of it as "digital gold." He believes that if the total market size of crypto assets were to reach half that of gold in the future, there would be significant upside potential for the price of a single Bitcoin. However, this premise depends on Bitcoin being genuinely recognized by mainstream capital as "digital gold," rather than merely being viewed as a "high-risk volatile asset" on institutional balance sheets today.
Looking at multi-year cycles, our attitude toward Bitcoin remains positive. However, the short-term market is indeed facing multiple pressures, such as liquidity shortages and institutional portfolio rebalancing, and this tension may persist for some time,” he said.
Regarding Hong Kong's New Policies: The "Window of Opportunity" for Compliance Breakthrough
Consensus Hong Kong 2026 has just concluded, and the Hong Kong government has designated 2026 as the "Year of Strong Implementation." Dr. Andy Cheung believes that Hong Kong is betting on a very clear niche—the most trusted compliant Web3 hub.
He reviewed three recent substantive policy changes that have been implemented:
1) BTC/ETH margin loans approved; compliant funds can obtain fiat liquidity by pledging major cryptocurrencies.
2) Perpetual contracts are open to professional investors, with relaxed restrictions on derivative instruments.
3) The rules for affiliate market makers have been relaxed, and the eligibility criteria for market makers have been further optimized.
In addition, stablecoin licenses are expected to be issued for the first time in March 2026, and the size of tokenized gold has doubled.
“The U.S. has deep integration between finance and the real economy, while Hong Kong’s advantage lies in offshore finance and ‘one country, two systems.’ The window has opened; how wide it becomes will determine Hong Kong’s future position in this sector,” said Dr. Andy Cheung.
Summary
Should you buy the dip, or wait further?
Dr. Andy Cheung’s presentation did not offer binary answers. Instead, he provided a framework for analysis that can be applied regardless of market conditions:
Understand institutional cost structures, respect the dynamics of liquidity transmission, and prioritize the timing window for compliance trends.
These three things may be more important than predicting tomorrow’s price movements.