In the new situation of the tariff war, the global Crypto Assets market welcomes development opportunities

In mid-May, the US-China trade negotiations made positive progress, alleviating market concerns about global supply chain disruptions. This favorable news drove significant increases in the US stock and Crypto Assets markets, reflecting investors' optimistic expectations for the economic outlook.

However, the U.S. economy still faces numerous challenges. Although the April non-farm payroll data exceeded expectations, indicating that the labor market remains robust, the volatility in the U.S. bond market has heightened concerns about the fiscal outlook. The 30-year U.S. bond yield has surged to its highest level in nearly 20 years, highlighting market worries over the U.S. debt situation.

At the same time, the Federal Reserve has maintained a cautious stance. The latest meeting minutes indicate that most officials believe inflation may be more persistent than expected, which could impact future monetary policy decisions.

In this complex economic environment, the Crypto Assets market has shown strong growth momentum. Bitcoin, as the representative of digital assets, saw a monthly increase of 12% in May, briefly surpassing the $110,000 mark. This performance not only reflects investors' confidence in Crypto Assets but also demonstrates its potential as a hedging tool in an uncertain policy environment.

Data shows that recently, Bitcoin ETFs in the United States have attracted a large inflow of funds, while gold funds have experienced outflows. This trend indicates that some investors are viewing Bitcoin as a new storage of value and hedging tool, replacing traditional gold investments.

The improvement of the regulatory environment has also brought good news for the crypto market. The new chairman of the U.S. Securities and Exchange Commission has proposed the goal of creating a "global crypto assets capital" and announced a shift in regulatory approach from "enforcement-led" to "rules-based." This change 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 United States and Hong Kong have successively promoted stablecoin regulatory bills, which will bring new funding channels to the digital currency market and provide institutional support for the development of the Web3 ecosystem.

With traditional financial institutions gradually participating in the crypto market and the continuous improvement of the regulatory system, the trend of real-world assets on-chain (RWA) is accelerating. This further strengthens the market consensus on Bitcoin as a "value storage base," highlighting its unique position in global asset allocation.

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

Overall, the performance of the crypto assets market in May was outstanding, reflecting the increasing confidence of investors in new digital assets against the backdrop of rising global economic uncertainty. As the regulatory environment gradually clarifies, the position of crypto assets in the global financial system is expected to be further enhanced. However, market participants still need to closely monitor factors such as U.S. Treasury yield trends and changes in regulatory policies to respond to potential market fluctuations.