With the continuous evolution of the financial markets in July 2025, the virtual money investment sector is presenting a new landscape. The long-term holding strategy remains the core choice for investors, and the underlying logic is mainly based on three aspects:

First of all, the impact of the Bitcoin halving cycle cannot be ignored. Historical data shows that the market usually reaches a cycle high point within 18 months after the halving event. Investors who have held Bitcoin for more than 3 years have a profit probability of over 85%.

Secondly, the virtual money market is undergoing a deep institutionalization process. As mainstream financial institutions continue to enter, the market's volatility is expected to decrease, making long-term holding strategies more in line with market development trends.

Moreover, the expansion of interest-bearing scenarios for Virtual Money provides investors with a new source of income. Not only can Ethereum staking yield considerable returns, but various tokenization projects of physical assets are also expected to generate annualized returns of 4% to 12%, and the compound interest effect will further amplify this advantage.

However, there are still opportunities in short-term trading. High-risk assets such as MEME coin may experience explosive growth during a bull market cycle. Significant events such as the launch of new public chain mainnets may also create arbitrage opportunities. However, investors need to be cautious of market volatility that may be triggered by changes in Federal Reserve policy and global crypto tax reforms.

Overall, the investment strategy for Virtual Money in 2025 should focus on long-term holding, with a recommendation to allocate 70% of funds to core assets like Bitcoin and Ethereum. The remaining 30% can be used to seize short-term trends in emerging sectors such as Layer 2 and tokenization of physical assets, but strict stop-loss strategies must be implemented.

It is worth noting that with the full implementation of the EU MiCA regulation by the end of 2025, opportunities for regulatory arbitrage will significantly decrease. Investors need to gradually shift towards trading logic based on fundamentals.

Market data also supports a long-term holding strategy. CoinGlass predicts that the volatility of Bitcoin will drop to 35% in 2025, making it more stable compared to 65% in 2023. Analysis from Bloomberg Intelligence shows that the launch of ETFs will smooth out the annualized return curve of Bitcoin, with the expected return rate for long-term holding strategies reaching 150% in 2025, far exceeding the expected return of 82% for short-term trading.

In this rapidly changing market, investors need to stay alert and adjust their strategies in a timely manner to cope with the evolving Virtual Money ecosystem.