On August 11, researchers from Uniswap Labs, Copenhagen Business School, and Circle recently released a paper titled "Research on the Drivers of Crypto Asset Prices". The article uses structural vector autoregressive models to study the factors that affect cryptocurrency returns. The model uses the common movement of asset prices to identify the impact of monetary policy and risk sentiment on crypto asset prices in conventional markets. Specifically, the researchers break down daily bitcoin returns into three factors reflecting conventional risk premiums, monetary policy, and crypto-specific shocks. By leveraging the common movement of bitcoin and stablecoin market capitalization, the shocks of specific cryptocurrencies are further broken down into changes in crypto risk premiums and cryptocurrency adoption levels. The analysis shows that crypto asset prices are significantly influenced by conventional risk and monetary policy factors. It is worth noting that the factor of tightening monetary policy accounts for more than two-thirds of the crypto market decline in 2022. In contrast, the compression of crypto risk premiums has been the main driver of cryptocurrency returns since 2023, independent of the active stock market background.