Encryption and AI Convergence Era: Exploring the Overlooked Truth

In the fast-developing world of cryptocurrencies and artificial intelligence, the truly important stories often lie hidden beyond the noise. To uncover these overlooked truths, a brand new English video program has emerged. This program is co-created by two hosts, aiming to take viewers on a deep exploration of the dramatic fluctuations in the crypto market, the breakthroughs and challenges of AI technology, the logic of success and failure in the venture capital world, and the market storms that cause billions of dollars in market value to evaporate in an instant. From Silicon Valley to Asia, the program seeks to penetrate the surface noise, interpret the deeper narratives behind it, and uncover hidden truths beyond the news headlines.

The global economy is facing challenges

Recently, the dramatic escalation and easing of international trade frictions have become the focus of the market. The International Monetary Fund (IMF) has significantly lowered its global economic growth forecast for 2025 from 3.3% at the beginning of the year to 2.8%, marking the lowest level since the pandemic in 2020. This adjustment is mainly due to two major pressures: uncertainty in trade policies and the risk of global supply chain disruptions. Data shows that the container order volume from one country to another has plummeted by over 60% in just three weeks.

At the same time, the economic policy uncertainty index of a certain country has climbed to a 40-year peak, with gold futures prices breaking through $3,500 per ounce for the first time. Interestingly, Bitcoin has risen by 10% against the trend, reaching a high of $94,000. Is this the market adapting to the "new normal," or is it the calm before the storm?

Subtle Changes in Trade Relations

A subtle shift has emerged in the trade dispute: the finance minister of a certain country openly acknowledged that "the trade deadlock is unsustainable," and the government has signaled that it may reduce tariffs on some goods from the current high levels to 50%-65%. Leaders have also stated that high tariffs may be significantly reduced, but will not be completely eliminated, while emphasizing that they will not show weakness during negotiations.

Analysis suggests that although it may seem on the surface that one party has taken the first step to ease tensions, in reality, the other party had already begun to strategize several years ago, including restricting the export of key resources and shifting production bases to circumvent tariff barriers. Both sides have adequate leverage to engage in this game.

Positive Changes in the Encryption Market

This week, the encryption market has experienced significant volatility. A certain country's spot Bitcoin ETF recorded its largest single-day capital inflow since January, with a cumulative net inflow of over $912 million this week, reflecting a clear recovery in investor sentiment and helping Bitcoin prices break through $93,000.

Bitcoin rose 11% this week, surpassing a certain tech giant in market capitalization for the first time, becoming the fifth largest asset globally. Other mainstream encryption currencies such as Ethereum and Solana also saw gains. Although the price of Ethereum is still far below some investors' expected targets, market confidence has improved with positive news regarding ETFs. Ethereum ETFs recorded the highest net inflow since February, with over $150 million in funds flowing in just the past few days.

It is worth noting that a regulatory agency in a certain region has approved an innovative product: the world's first Ethereum ETF that allows for direct staking rewards. This marks the region's acceleration of encryption financial innovation, striving to create a global crypto hub. In contrast, ETFs in other markets are currently limited to tracking prices and have not been able to provide staking yields.

Large-Scale Bitcoin Acquisition Plan

Another significant event this week is a $3.6 billion Bitcoin acquisition plan initiated by the son of a well-known figure. This plan will hold approximately 42,000 Bitcoins, making it the third largest Bitcoin reserve institution in the world. The partners include several well-known investment institutions, and the overall strategy mimics the holding pattern of a certain company—continuously increasing Bitcoin holdings through the issuance of stocks and debt.

The newly established company is led by a staunch supporter of Bitcoin, who has actively promoted the adoption of Bitcoin in a certain country. There is widespread belief that he has the potential to replicate previous successful cases and may even eventually hold hundreds of thousands of Bitcoins.

Unlike the poor performance of the encryption market during the global financial crisis in 2020, Bitcoin has performed quite robustly this time. Although it briefly dipped when gold prices rose, it quickly rebounded. This indicates that Bitcoin is becoming a mature hedging tool, while gold will continue to play its traditional role as a safe haven.

Changes in the Regulatory Environment

A regulatory agency in a certain country has welcomed a new chairman who will participate in a series of discussions on cryptocurrencies. These meetings will focus on hot topics such as encryption asset custody, physical assets on-chain, and decentralized finance. The new chairman is known for his support of financial innovation, so the encryption market feels optimistic about his appointment.

Currently, there are 72 ETFs related to encryption awaiting approval, covering various digital assets, including multiple mainstream cryptocurrencies and even some derivatives.

Rapid Development in the AI Field

In the field of artificial intelligence, a special marathon was held in the capital of a certain country, where 20 humanoid robots challenged 12,000 human participants to complete 21 kilometers, with one robot finishing the race in 2 hours and 40 minutes. This technological showcase reflects the country's ambition to promote the practical application of AI in everyday life.

At another important exhibition, a certain automobile manufacturer announced a partnership with a local AI company, planning to implement its AI system in new cars that will enter the local market later this year. This indicates that the manufacturer is actively adapting to market demands and strengthening cooperation with local technology companies to maintain competitiveness.

It is worth noting that this AI company was just a hedge fund using AI and machine learning for quantitative trading a few years ago. With the rise of large language models (LLM) in 2021, they transformed to develop AI models and have now become one of the important AI companies globally. The CEO of a certain chip giant recently visited and specifically met with the company's team to discuss plans for customizing chips for the local market.

Industry Outlook

The upcoming large-scale industry conference is expected to have an optimistic atmosphere, with institutional funds flowing into the encryption market, and the Bitcoin ETF has changed the overall market sentiment. Last month, a certain region also announced plans to put over $150 billion in real estate assets on-chain. This conference will set the tone for the industry's direction in the coming quarters, and more encryption projects are expected to explore decentralized LLM and AI tools.