Geopolitical Changes and New Trends in the Crypto Market

In the current era where encryption and artificial intelligence technologies intersect, the changes in the global geopolitical landscape are profoundly impacting the crypto market, AI technology development, and international trade patterns. Recently, signs of easing in U.S.-China relations, Trump's Middle East trip, and the alleviation of several regional conflicts have all had a far-reaching impact on the global economy. At the same time, crypto assets are gradually gaining recognition in mainstream finance.

US-China relations ease, market sentiment warms up

On May 12, China and the United States reached a temporary agreement to reduce tariffs to 30% and 10%, respectively. This news immediately triggered a positive reaction in the market, with the stock market rising rapidly. The U.S. Treasury Secretary called it a "restart" and revealed that broader negotiations would be initiated in the future.

Although the 90-day tariff truce is not a long-term solution, this move has been sufficient to inject vitality into risk assets. The crypto market, as a sensitive indicator of global sentiment, reacts particularly quickly, sometimes reaching new highs and at times pulling back due to profit-taking. Currently, the major stock indices are not far from their levels at the beginning of the year, with the S&P 500 even turning positive.

Trump's Middle East Trip: AI Diplomacy and Strategic Restructuring

On May 13, Trump began a four-day visit to the Middle East, involving countries such as Saudi Arabia, Syria, and the UAE. This trip not only signed a large number of defense orders and investment agreements but also reached important AI and chip cooperation agreements involving several major American technology giants.

Trump breaks 25 years of silence in US-Syria high-level relations, meeting with the Syrian president and announcing the lifting of sanctions. In Qatar, he signed billions of dollars in trade and defense agreements, including a record aircraft procurement order. This series of diplomatic actions aims to reshape the strategic landscape and technological alliances in the Middle East.

It is worth noting that Trump has reinstated the "maximum pressure" strategy against Iran, compressing Iran's economic space through comprehensive sanctions. In contrast, Gulf allies have gained support through AI chip deals, defense upgrades, and investment partnerships, creating a stark contrast.

In the UAE, the United States reached a preliminary agreement with it to allow the latter to import a large number of AI chips annually for the construction of large AI data centers. The two sides also announced plans for a 5 GW AI park, which will be one of the largest AI projects outside the United States.

Signs of Easing Global Geopolitical Tensions

In May, the Kurdistan Workers' Party announced its dissolution, ending a 40-year armed struggle and bringing hope for regional stability. In Syria, Kurdish forces are integrating into the government army, initiating a reconciliation process.

In the South Asian region, India and Pakistan have resumed talks to discuss easing border tensions and restoring bilateral trade. Although the negotiations are still in the early stages, reaching a ceasefire agreement could have a profound impact on the regional situation.

Russia and Ukraine are also seeking to ease the conflict through diplomatic talks. Although the Russian side sent only a low-level delegation, the Ukrainian president personally attended the meeting, demonstrating a proactive attitude towards promoting a diplomatic resolution.

The crypto market gains mainstream recognition

Against the backdrop of a strong traditional financial market, crypto assets have also performed remarkably. Bitcoin briefly surpassed $105,000, and although there was a subsequent pullback, institutional interest continues to rise.

A well-known cryptocurrency exchange platform will officially be included in the S&P 500 index, which 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 inflows, marking a leap in the status of crypto assets within the mainstream financial system.

Another crypto trading platform completed its Nasdaq listing at a price of $52, exceeding market expectations and indicating a positive attitude from the capital markets towards "crypto native platforms." In addition, a well-known stock trading app also spent $179 million to acquire a Canadian compliance platform, further consolidating its presence in the North American crypto market.

The global encryption regulatory framework is gradually taking shape

The Thai government has announced plans to launch a publicly available, investment-grade encryption token, 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.

U.S. lawmakers have made progress on the legislation for the stablecoin regulatory framework "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.

Industry leaders are actively communicating with lawmakers and regulators to advocate for innovation-friendly rules. Although there are still differences in supervision and compliance, bipartisan consensus in the digital asset space is growing, and lawmakers are optimistic about the passage of the bill.