- Political expectations lifted crypto prices in 2025, but structural change did not follow.
- Institutional capital now guides crypto markets with longer time horizons and discipline.
- Bitcoin strengthens as a reserve while altcoins must prove relevance through utility.
The cryptocurrency market has entered a new phase as politically driven optimism fades and institutional capital reshapes market structure. Expectations tied to the so-called “Trump Trade” failed to translate into rapid policy change, forcing a reassessment of value.
Throughout 2025, many crypto assets traded ahead of regulation. Investors priced tokens on the assumption that U.S. political shifts would unlock fast regulatory clarity and macro support. That momentum slowed as those changes failed to arrive.
With the end of the year, the price action took a different direction compared to the political narratives. Markets failed to rally anymore, which was somehow related to the election cycles. Opposite to that, capital movements started to demonstrate the investors‘ longer-term strategies rather than their short-term expectations.
Institutions Replace Politics as Market Driver
For Yat Siu, the fading Trump-linked trademark marked a structural turning point. Speaking to CoinDesk in Hong Kong, he said crypto’s next phase would rely on structure rather than politics. “Trump is pro crypto, so that’s a net positive,” Siu said. “But we are not his top priority. The industry thought he would be a savior, and that was never the case.”
He said the past year revealed how much market momentum depended on expectations instead of fundamentals. As a result, participants now face the task of adjusting to a market driven by durable capital.
That adjustment is occurring as institutional investors become permanent participants. According to Siu, large funds now treat crypto as a long-term asset class rather than a political trade tied to election cycles. This shift has begun to change trading behavior. Volatility tied to headlines has softened, while allocation decisions increasingly reflect risk management, liquidity, and long-term utility.
Bitcoin Separates From Altcoins as Roles Diverge
Siu said institutional capital is also redefining how value is distributed across crypto markets. In his view, Bitcoin now functions as a reserve asset similar to gold. “Bitcoin functions very much like gold. It’s our reserve asset,” Siu said.
That role change forces a recalibration for altcoins. Instead of moving in lockstep with Bitcoin, other tokens must justify relevance through productive use within the digital economy. Siu said Animoca Brands aims to operate as an altcoin-focused digital asset treasury. The company filed for a reverse merger last year to pursue a Nasdaq listing.
This approach reflects a broader structural divide. Bitcoin anchors balance sheets, while altcoins increasingly represent operational assets tied to applications, platforms, and user activity. Can altcoins maintain relevance without relying on political momentum?
Crypto and AI Converge as Infrastructure Layer
Siu also described a growing convergence between crypto and artificial intelligence. He said blockchain provides the trust and sovereignty required for autonomous systems to operate at scale. “For most users, the hedge towards AI is owning crypto,” Siu said. “Crypto is essentially the natural asset class of AI agents.”
He said autonomous agents who manage assets or execute transactions need infrastructure that cannot face arbitrary changes. According to Siu, blockchain meets that requirement more effectively than traditional systems.
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He compared the shift to earlier technology cycles. In those cycles, infrastructure faded from attention while quietly supporting entire industries. “We don’t talk about e-commerce anymore. It’s just commerce,” he said.
Siu linked this transition to changes in user engagement. He said crypto increasingly absorbs gaming culture rather than embedding finance into games. He pointed to Hyperliquid leaderboards, where gains and losses remain public. According to Siu, such mechanics reflect how younger users already understand participation.
“We think the entire industry of crypto is gamified finance,” he said. With Consensus Hong Kong returning to the city, Siu said Hong Kong sits at the intersection of global finance and emerging technology as this transition unfolds.
