Yat Siu on Crypto's Post-Trump Era: From Political Hype to Structure-Driven Growth

According to CoinDesk reporting, Yat Siu, the executive chairman and co-founder of Animoca Brands, recently shared his perspective on the crypto market’s evolving dynamics. His analysis marks a critical inflection point in how the industry should think about value creation and growth drivers going forward.

The End of the “Trump Moment” and Political Narratives

The crypto market entered 2025 riding on substantial optimism surrounding Donald Trump’s return to office. Market participants had placed outsized bets on pro-crypto political tailwinds, expecting regulatory breakthroughs and favorable policy shifts. However, as the initial months unfolded, those inflated expectations failed to materialize at the pace many had anticipated. According to Yat’s assessment, this signals the conclusion of what could be termed the “politically driven” phase of recent crypto cycles—a period when sentiment and policy expectations dominated trading narratives. The market has exhausted the gains available from political momentum alone.

Institutional Capital Reshaping Market Hierarchy

As political narratives fade, institutional capital is playing an increasingly decisive role in determining market structure. Yat points out that major institutions have been systematically positioning Bitcoin toward the status of a gold-like reserve asset—an evolution that fundamentally reshapes how different cryptocurrencies are evaluated. This shift creates an asymmetry in the market: Bitcoin consolidates its reserve asset positioning, while alternative cryptocurrencies face mounting pressure to demonstrate tangible, real-world utility beyond speculation. Altcoins can no longer rely on narrative alone; they must prove their practical value proposition through adoption, technology, and problem-solving capability.

AI Convergence and Hong Kong’s Strategic Position

One of Yat’s most compelling observations concerns the rapid convergence between artificial intelligence and cryptocurrency technology. Rather than treating these as separate domains, he frames crypto as “a natural asset class proxy for AI”—suggesting that the technological and economic trajectories of these two fields are becoming increasingly intertwined. This convergence is already visible in the emergence of AI-powered blockchain applications, decentralized AI networks, and token-based incentive structures for machine learning models. Against this backdrop, Yat highlights that Hong Kong is positioning itself as a crucial global nexus where these forces intersect. The city’s regulatory sophistication, financial infrastructure, and openness to blockchain innovation create ideal conditions for becoming a hub where AI-crypto synergies develop at scale.

What’s Next: Structure Over Sentiment

The overarching message from Yat’s analysis is clear: the crypto market is transitioning from a sentiment and narrative-driven environment toward one governed by infrastructure, regulation, and genuine user adoption. This represents maturation—a shift away from cyclical hype toward sustainable foundations. Projects and assets that can articulate clear infrastructure benefits, navigate regulatory frameworks effectively, and build real user bases will outperform those relying on cycles of hope and fear. For investors and builders, the implication is straightforward: conduct deeper due diligence on technological fundamentals and utility, while remaining skeptical of purely political or speculative narratives.