Crypto Market’s ‘Trump Moment’ is Over: Animoca Co-founder Reveals Critical Structural Shift
In a definitive statement capturing the current market zeitgeist, Animoca Brands co-founder Yat Siu has declared the cryptocurrency sector’s ‘Trump moment’ officially over. Speaking from Hong Kong in early 2025, Siu’s analysis signals a pivotal structural transition for digital assets, moving beyond political speculation toward a new era defined by institutional capital and tangible utility. This shift represents the most significant evolution in market character since the last bull cycle, fundamentally altering investment theses and project valuations across the board.
The End of the Crypto Market’s ‘Trump Moment’
Yat Siu’s characterization of a concluded ‘Trump moment’ refers to a specific period in 2023-2024. During that time, market sentiment became heavily intertwined with the political narrative surrounding former U.S. President Donald Trump. Many investors viewed potential regulatory shifts under a Trump administration as a primary catalyst for growth, fueling speculative rallies. However, as Siu noted in his CoinDesk interview, this sentiment failed to materialize into concrete, enacted policy. Consequently, the market experienced a collective recalibration. Investors have now decisively shifted their focus away from political prognostication and back toward core fundamentals. This refocusing includes rigorous evaluation of:
- Protocol revenue and sustainable tokenomics
- User adoption metrics and network activity
- Technological innovation and development progress
- Regulatory compliance and real-world integration
This transition marks a maturation phase for the industry. It moves the conversation from ‘what might happen’ politically to ‘what is actually being built and used’ technologically.
Institutional Capital Reshapes the Market Landscape
The most powerful force driving this new phase, according to Siu, is the accelerating influx of institutional capital. This capital is not merely speculative ‘hot money’ but strategic, long-term investment from hedge funds, asset managers, and publicly traded corporations. Their entry is completely altering the market’s character in several key ways. Firstly, it increases overall liquidity but also introduces more sophisticated and risk-averse trading strategies. Secondly, it demands higher standards of transparency, governance, and regulatory clarity from projects. Thirdly, it creates a growing divergence between assets deemed ‘institutionally acceptable’ and the broader altcoin universe. This institutional wave follows the landmark approvals of spot Bitcoin and Ethereum ETFs in the United States, which opened a regulated gateway for traditional finance. The table below contrasts the pre- and post-‘Trump moment’ market dynamics:
| Market Characteristic (Pre-2024) | Market Characteristic (Post-2025 Shift) |
|---|---|
| Driven by retail sentiment & political hype | Driven by institutional flows & fundamentals |
| Altcoins rallied on narrative and speculation | Altcoins require proof of utility and adoption |
| Bitcoin as a volatile, high-beta asset | Bitcoin establishing as a digital reserve asset |
| Focus on trading and short-term gains | Focus on infrastructure and long-term value accrual |
The Bifurcation of Bitcoin and Altcoins
Siu’s analysis highlights a crucial bifurcation in asset narratives. On one path, Bitcoin is solidifying its role as a digital reserve asset, often compared to digital gold. This status attracts institutional portfolios seeking a non-correlated store of value and inflation hedge. Its market movements are increasingly influenced by macro-economic factors like interest rates and dollar strength, similar to traditional haven assets. Conversely, the path for altcoins has become markedly more challenging. The era of ‘rising tides lift all boats’ is fading. Now, each project faces the imperative to demonstrate clear, measurable utility beyond its own ecosystem. Siu emphasized that tokens must prove value in areas like decentralized physical infrastructure (DePIN), real-world asset (RWA) tokenization, or scalable decentralized finance (DeFi). Projects lacking a compelling use-case are struggling to attract sustained capital in this new environment.
The Convergent Future: Crypto, AI, and Gamified Finance
Looking beyond the immediate transition, Yat Siu pointed to two transformative trends that will reshape the next-generation financial landscape. The first is the profound convergence of cryptocurrency and artificial intelligence (AI). This synergy is already visible in several domains. AI agents require autonomous economic systems for transactions, making crypto-native payment rails and smart contracts essential. Furthermore, decentralized compute markets, powered by crypto tokens, are becoming critical for accessing GPU resources. Blockchain also provides solutions for verifying the provenance and integrity of AI-generated content and data sets. The second trend, stemming from Animoca’s core expertise, is the evolution toward gamified finance or ‘GameFi’. For digitally-native generations, financial interactions will increasingly occur within immersive, engaging, and community-driven environments. Earning, investing, and trading will be integrated into game-like experiences with clear incentives, social features, and transparent ownership of in-game assets via NFTs. This model promises to onboard millions of new users into the crypto economy through familiar and engaging mechanics.
Conclusion
The declaration that the crypto market’s ‘Trump moment’ is over serves as a vital milestone for the industry. Yat Siu’s analysis underscores a structural transition from hype-driven speculation to a fundamentals-focused era dominated by institutional capital. This shift creates a more demanding environment for altcoins, which must now prove real-world utility, while cementing Bitcoin’s role as a digital reserve asset. Ultimately, the future points toward a deeply integrated landscape where cryptocurrency, AI, and gamified experiences converge to redefine finance itself. The market’s character has changed irrevocably, prioritizing sustainable building over political betting.
FAQs
Q1: What did Yat Siu mean by the ‘Trump moment’ in crypto?
The term refers to a period, primarily in 2023-2024, when market sentiment and prices were heavily influenced by the anticipation of favorable cryptocurrency policies under a potential Donald Trump administration. It was a phase where political narrative temporarily overshadowed technological fundamentals as a primary market driver.
Q2: Why is this shift to institutional capital so significant?
Institutional capital brings larger scale, longer time horizons, and demands for higher operational standards. It changes market volatility patterns, increases focus on regulatory-compliant assets, and validates cryptocurrency as a legitimate asset class within traditional finance portfolios.
Q3: How are altcoins affected by this new market phase?
Altcoins face increased pressure to demonstrate tangible utility and user adoption. Investment is becoming more selective, favoring projects with clear revenue models, active ecosystems, and solutions for real-world problems, rather than those relying solely on speculative narratives.
Q4: What is ‘gamified finance’ or GameFi?
Gamified finance refers to the integration of financial services and incentives into video game-like environments. It uses blockchain technology to provide true ownership of in-game assets (NFTs) and allows players to earn cryptocurrency through gameplay, blending entertainment with economic participation.
Q5: How does AI intersect with cryptocurrency?
The convergence occurs in areas like AI agents needing crypto wallets for autonomous transactions, blockchain-based verification of AI data and outputs, and decentralized marketplaces for trading AI models or renting computational power, creating a new synergy between the two technological frontiers.
