The Global Acceleration Embracing Crypto Assets: A New Trend Amid Trade Frictions

In mid-May, the China-U.S. economic and trade talks made positive progress, alleviating market concerns about the disruption of global supply chains. This good news propelled both the U.S. stock market and the crypto assets market to rise, breaking the traditional stock market curse of "sell in May." The S&P 500 Index and the Nasdaq Index both recorded their strongest May performance in nearly 30 years, reflecting investors' optimistic expectations for the economic outlook.

However, the U.S. economy still faces numerous challenges. Deteriorating fiscal conditions, the debt ceiling issue, and persistent inflationary pressures have led the Federal Reserve to maintain a cautious monetary policy stance. This "steady yet risky" economic situation, combined with policy uncertainty, is prompting investors to reassess their asset allocation strategies.

In this context, Bitcoin, as a representative of digital assets, has shown strong upward momentum. During May, the price of Bitcoin rose from $95,000 to $105,000, with a monthly increase of 12%. This performance not only resonates with the US stock market but also highlights the safe-haven value of Crypto Assets during uncertain times.

The flow of funds data further confirms this trend. According to statistics, over the past five weeks, U.S. Bitcoin ETFs have attracted more than $9 billion in inflows, while gold funds have experienced large-scale outflows. This "suction effect" indicates that some investors are viewing Bitcoin as a new store of value and hedging tool.

Mainstream financial institutions are also starting to accept Crypto Assets. A large bank announced that it allows customers to invest in Bitcoin, although it has not yet provided custody services. This decision marks Bitcoin's further integration into the traditional financial system, and it is expected to prompt more institutions to follow suit.

The improvement of the regulatory environment has also brought good news to the Crypto Assets market. The new chairman of the U.S. Securities and Exchange Commission has proposed the goal of creating a "global Crypto Assets capital" and plans to shift the regulatory model from "enforcement-led" to "rules-based." This shift is expected to provide market participants with a clearer legal framework, reduce uncertainty, and promote innovation.

The policy breakthroughs in the stablecoin sector are also worth noting. The U.S. Senate has passed a procedural vote on the first federal regulatory framework for stablecoins, and Hong Kong has also passed related legislation. These initiatives will reshape the global Crypto Assets market and provide institutional support for the development of the Web3 ecosystem.

With the dual entry of traditional financial institutions and regulatory systems, the concept of Real World Assets (RWA) is gaining increasing attention. The market's consensus on Bitcoin as a "value storage base" is further strengthened, highlighting its unique position in global asset allocation.

Looking ahead, the volatility of traditional financial markets may serve as a catalyst for the rise of Crypto Assets at certain stages. In the short term, concerns over fiscal issues triggered by rising U.S. Treasury yields may lead to safe-haven funds flowing into the crypto market. In the long run, the deterioration of the U.S. fiscal situation may enhance the safe-haven appeal of Crypto Assets, prompting investors to shift towards decentralized assets like Bitcoin to hedge against credit risk.

The performance of the crypto assets market in May reflects that, against the backdrop of increasing uncertainty in the global economy, Bitcoin is becoming a new choice for capital to hedge against the "uncertainty of the old order." With the improvement of the regulatory environment, this trend may further accelerate. Although it still faces many challenges in the short term, the narrative of Bitcoin as "digital gold" has gradually become a mainstream view.