HONG KONG, March 2025 – The cryptocurrency market has decisively moved beyond its speculative ‘Trump moment,’ entering a profound period of structural transition defined by institutional capital and real-world utility, according to a pivotal analysis from Animoca Brands co-founder Yat Siu. This shift marks a critical maturation point for the digital asset class, compelling investors and builders alike to refocus on core technological and economic fundamentals rather than political sentiment.
The End of the Crypto Market’s ‘Trump Moment’
In an exclusive interview with CoinDesk, Yat Siu, a leading voice in Web3 investment and development, framed the market’s recent evolution. He described how, throughout 2024, the industry viewed former U.S. President Donald Trump as a potential catalyst for regulatory clarity and mainstream adoption. Consequently, this perception fueled significant speculative optimism and market volatility. However, Siu now asserts this phase has conclusively ended. The anticipated policy shifts failed to materialize at the scale or speed the market expected, leading to a collective reassessment. Investors are consequently pivoting from sentiment-driven trading to a rigorous analysis of project fundamentals, tokenomics, and tangible use cases.
This transition mirrors historical patterns in emerging technology sectors, where initial hype eventually gives way to sustainable value discovery. The following table contrasts the characteristics of the concluded ‘Trump moment’ with the emerging market structure:
| Market Phase: ‘Trump Moment’ (2024) | Market Phase: Structural Transition (2025+) |
|---|---|
| Price drivers: Political rhetoric and regulatory expectations | Price drivers: Institutional inflows and proven utility |
| Investor focus: Short-term sentiment and momentum | Investor focus: Long-term fundamentals and network adoption |
| Dominant narrative: Speculative ‘savior’ narrative | Dominant narrative: Infrastructure and integration narrative |
| Capital source: Primarily retail and speculative capital | Capital source: Increasingly institutional and venture capital |
Institutional Capital Reshapes the Market’s Character
Yat Siu emphasized a transformative force now steering the market: the relentless influx of institutional capital. This movement, which accelerated following the approval of U.S. spot Bitcoin ETFs in early 2024, is fundamentally altering the market’s character. Institutional investors bring different priorities compared to retail speculators. Their involvement demands:
- •Enhanced regulatory compliance and clearer custody solutions.
- •Robust risk management frameworks and sophisticated financial products.
- •Deep liquidity to facilitate large-scale entries and exits.
- •Demonstrable, long-term value propositions beyond pure price appreciation.
This institutionalization process reduces volatility over time and correlates crypto asset prices more closely with traditional macro-financial indicators. Moreover, it validates the asset class for a broader spectrum of global allocators, from pension funds to sovereign wealth entities. As a result, the market is becoming less about viral moments and more about steady, structural growth anchored in verifiable adoption metrics.
The Diverging Paths of Bitcoin and Altcoins
Siu’s analysis further delineates the evolving roles within the crypto ecosystem. He notes that Bitcoin is progressively cementing its status as a digital reserve asset , often compared to digital gold. Its primary value proposition—decentralized, censorship-resistant store of value—resonates strongly with institutional portfolios seeking non-correlated assets and inflation hedges. This trajectory is supported by its finite supply, robust security, and growing recognition as a strategic treasury asset by corporations and nations.
Conversely, the landscape for altcoins—all cryptocurrencies other than Bitcoin—faces a more demanding proving ground. The era of easy gains based on mere promises is over. Altcoins must now demonstrate undeniable real-world utility to justify their valuation and secure long-term investment. Siu highlights several critical areas where this utility is being tested:
- •Decentralized Finance (DeFi): Providing efficient, transparent, and accessible financial services like lending, borrowing, and trading.
- •Digital Ownership & NFTs: Enabling verifiable ownership of digital and physical assets, from art to real estate records.
- •Supply Chain Management: Offering immutable tracking and provenance for goods across global networks.
- •Decentralized Physical Infrastructure (DePIN): Coordinating real-world hardware networks for services like wireless connectivity or data storage.
The Convergent Future: Crypto, AI, and Gamified Finance
Looking beyond the immediate transition, Yat Siu identifies a powerful convergence that will redefine the next-generation financial landscape: the intersection of cryptocurrency and artificial intelligence. He posits that blockchain technology provides the essential trust and ownership layer for AI-driven economies. For instance, AI agents could autonomously transact, own assets, and provide services using crypto wallets and smart contracts. This synergy could unlock unprecedented levels of automation and economic complexity.
Furthermore, Siu envisions that for future generations, finance will likely take the form of gamified finance or ‘GameFi.’ In this model, financial interactions—saving, investing, borrowing—are integrated into engaging, interactive digital experiences. This approach leverages the native digital upbringing of younger demographics, making financial literacy and participation more intuitive and accessible. Projects that successfully merge compelling user experiences with sound economic models are poised to lead this new frontier, moving cryptocurrency from the fringe of finance to its interactive core.
Conclusion
The declaration by Animoca Brands’ Yat Siu that the crypto market’s ‘Trump moment’ is over signifies a vital maturation for the entire industry. This crypto market transition moves the focus from political speculation to substantive fundamentals, driven by institutional capital demanding rigor and real-world utility. While Bitcoin solidifies its role as a digital reserve asset, altcoins face the imperative to prove their worth through tangible applications. Ultimately, the converging paths of cryptocurrency, AI, and gamified experiences are charting the course for a more integrated, efficient, and participatory global financial system. The market’s structural transition, therefore, is not an end but a necessary beginning for sustainable, long-term growth.
FAQs
Q1: What did Yat Siu mean by the ‘Trump moment’ in crypto?
The term referred to a period in 2024 where market sentiment and prices were heavily influenced by the perception that former President Donald Trump’s policies would become highly favorable to the cryptocurrency industry, acting as a speculative catalyst before any concrete policy changes occurred.
Q2: Why is institutional capital changing the crypto market?
Institutional investors require higher levels of security, regulation, and liquidity. Their participation reduces extreme volatility, encourages the development of sophisticated financial products, and shifts the investment thesis from short-term speculation to long-term, fundamentals-based valuation.
Q3: How is Bitcoin’s role different from altcoins in this new phase?
Bitcoin is increasingly being treated as a ‘digital gold’ or macro reserve asset, valued for its security and scarcity. Altcoins, however, are being judged primarily on their utility—the real-world problems they solve and the active use of their underlying blockchain networks.
Q4: What is ‘gamified finance’ or GameFi?
Gamified finance refers to the integration of financial services and mechanisms into game-like digital environments. It uses elements like rewards, progression systems, and interactive experiences to make activities like investing, lending, or trading more engaging, especially for digitally-native generations.
Q5: How does artificial intelligence (AI) intersect with cryptocurrency?
Blockchain provides a secure, transparent framework for ownership and transactions. AI agents can utilize this framework to autonomously manage assets, execute contracts, and provide services. Crypto can also help verify the provenance and usage of AI-generated content and models, creating a synergistic relationship between the two technologies.