Crypto Market and Global Economy: Anxiety and Opportunities on the Edge of a Cliff

Against the backdrop of increasing uncertainty in the global economy, the crypto market has demonstrated remarkable resilience. Recently, the International Monetary Fund (IMF) lowered its global economic growth forecast for 2025 from 3.3% to 2.8%, marking a new low since the pandemic. This adjustment is primarily due to the continued escalation of U.S. tariffs on China and the rising risks of disruptions in global trade chains.

However, amidst the spread of economic pessimism, the crypto market has shown an upward trend against the odds. The price of Bitcoin has broken through the $94,000 high, rising 11% over the week, and its market value has surpassed that of Google for the first time, making it the fifth largest asset globally. At the same time, the U.S. spot Bitcoin ETF recorded the largest single-day fund inflow since January, with a cumulative net inflow of over $912 million this week, reflecting a significant rebound in investor confidence.

There are subtle changes in the China-U.S. trade relationship. The U.S. Treasury Department acknowledges that the current tariff policy towards China is difficult to sustain, and the White House has signaled the possibility of lowering tariffs on certain goods. Behind this move is China's strategic layout over the years in diversifying its supply chain and controlling key resources.

A $3.6 billion Bitcoin acquisition plan has drawn attention as a hedging tool against market volatility in the crypto market. The plan will hold approximately 42,000 Bitcoins, making it the third-largest Bitcoin reserve institution in the world. Unlike during the 2020 financial crisis, Bitcoin is showing strong stability this time, indicating that it is becoming a mature hedging tool.

On the regulatory front, the U.S. Securities and Exchange Commission ( SEC ) welcomes a new chairman who will participate in a series of discussions regarding the custody of encryption assets, the tokenization of physical assets, and decentralized finance. Currently, there are 72 crypto-related ETFs awaiting approval, covering various digital assets.

In the field of artificial intelligence, China is showing a momentum of accelerated development. A special marathon was held in Beijing, where humanoid robots competed alongside human contestants. At the Shanghai Auto Show, BMW announced a partnership with a Chinese AI startup, planning to implement AI systems in new car models. These initiatives highlight China's ambition in the practical application of AI.

The upcoming Token 2049 conference is expected to present an optimistic atmosphere. Institutional funds are flowing into the crypto market, and the launch of Bitcoin ETFs has changed the overall market sentiment. In the future, more crypto projects may explore decentralized large language models and AI tools, injecting new momentum into industry development.

In the current context of challenges facing the global economy, the development of the crypto market and AI technology provides new opportunities for investors and innovators. However, in the face of a complex and ever-changing international situation, market participants must remain vigilant and carefully assess risks and opportunities.