New Landscape of Crypto and AI: Global Geopolitical Changes Impacting the Crypto Assets Market

In the context of the rapid development of encryption and AI technology, some important trends are quietly changing the market landscape. This article will delve into how global geopolitical changes affect the Crypto Assets market, the development of AI technology, and the patterns of international trade, exploring the profound impact of recent easing of international relations on the global economy, while also focusing on the latest developments in the mainstream financial recognition of Crypto Assets.

The easing of China-U.S. trade relations, market sentiment improves

Recently, the United States and China reached a temporary agreement to reduce tariffs to 30% and 10% respectively. This news had a positive impact on the market, with the stock market quickly rising. The U.S. Secretary of the Treasury stated that this is a "restart" and revealed that broader negotiations will take place in the coming weeks.

Although the 90-day tariff truce is not a real reconciliation, this move has been enough to inject vitality into risk assets. The Crypto Assets market, as a sensitive indicator of global sentiment, reacts quickly, sometimes hitting historical highs and sometimes retreating due to profit-taking. Currently, the S&P 500 index has turned positive for the year, and the Dow Jones and Nasdaq indices are down less than 1% from their levels at the beginning of the year.

New Developments in the Middle East Situation: New Patterns of AI, National Defense, and Energy

Trump recently completed a 4-day visit to the Middle East, signing important agreements wherever he went, from Saudi Arabia and Syria to the UAE. Saudi Arabia received him with a state guest protocol, signing huge defense contracts and committing to invest $600 billion in the fields of energy, technology, and infrastructure in the United States over the next 4 years. The two sides also reached important agreements on AI and chip cooperation, involving multiple tech giants, promoting Saudi-led related projects.

Trump also broke 25 years of silence between the US and Syria by meeting with the Syrian president, announcing the lifting of sanctions and encouraging normalization of relations between Syria and Israel. This series of diplomatic moves aims to reshape the strategic landscape and technological alliances in the Middle East.

In Qatar, Trump signed billions of dollars in trade and defense agreements, including the largest jet purchase order in the history of an airline. He also hinted that Qatar might play a role in mediating with Iran.

During the visit to the UAE, both parties announced a preliminary agreement allowing the UAE to import a large number of AI chips each year to power its large AI data centers. In addition, both sides also announced plans for a 5 GW AI park, which is one of the largest AI projects outside the United States.

Signs of Global Conflict Mitigation Emerging

In May, the Kurdistan Workers' Party ( PKK ) announced its dissolution, ending a 40-year armed struggle. The Iraqi government and the United Nations welcomed this. In Syria, Kurdish forces are integrating into the government army, opening a new chapter in the "reconciliation framework."

In the South Asian region, India and Pakistan have resumed negotiations due to economic incentives, focusing on alleviating border tensions and restoring bilateral trade.

Russia and Ukraine are also seeking to ease the conflict through diplomatic talks. The President of Ukraine personally attended the venue, demonstrating a proactive attitude in seeking international support and promoting a diplomatic resolution.

Crypto Assets Move Towards the Mainstream: Increased Institutional Recognition

Against the backdrop of a strong traditional financial market, Crypto Assets have also performed remarkably. Last week, Bitcoin broke through $105,000, and although there was some profit-taking afterward, institutional interest continues to rise.

A well-known Crypto Assets trading platform will officially be included in the S&P 500 index, replacing another financial services company. This means that passive investment funds, pensions, and ETFs will be forced to buy and hold the company's stock, potentially bringing in billions of dollars in capital inflow, and also marks a leap in the status of Crypto Assets within the mainstream financial system.

In addition, another trading platform completed its Nasdaq listing at a price of $52, exceeding market expectations, indicating that the capital market's attitude towards "crypto-native platforms" is becoming increasingly positive. An investment application also spent $179 million to acquire a Canadian compliance platform, which is expected to bring about a 10% increase in revenue and further consolidate its position in the North American crypto market.

The global Crypto Assets regulatory framework is gradually taking shape

Globally, the Thai government announced plans to launch a public investment-grade crypto asset, distinct from the central bank digital currency (CBDC). This initiative aims to create a blockchain financial tool that is more closely aligned with the real economy, directly advancing towards native encryption infrastructure.

U.S. lawmakers have made progress on the legislative framework for stablecoin regulation, known as "Genius." Although a related bill in the Senate previously failed to pass, negotiations have now reached 90% consensus. The proposed legislation will provide clear guidelines for stablecoin issuers and address issues related to consumer protection and financial stability.

Some executives from well-known Crypto Assets companies personally went to Washington to promote the bill, meeting with senators and regulators to advocate for innovation-friendly rules. Although there are still differences in oversight and compliance, there is increasing bipartisan consensus in the digital assets space, and lawmakers are optimistic that, with sustained pressure from industry leaders, the bill may soon pass the Senate.