Market Overview
This month, geopolitical conflicts replaced tariffs as the dominant market driver, with risk aversion dictating cryptocurrency trends. Following strong U.S. intervention in the Strait of Hormuz disputes, BTC briefly fell below the $100,000 threshold. However, due to the conflict’s short duration, market sentiment remained relatively stable, and volatility was contained. Post-ceasefire, prices rebounded sharply as focus returned to monetary policy.
Key Developments:
– Global Rate Cut Consensus: July rate cuts are unlikely, but the Fed’s dovish shift signals potential cuts in late 2025.
– Stablecoin Boom: The U.S. Senate passed the Stablecoin Innovation Act, and Circle’s IPO intensified global interest in stablecoin issuance. Major corporations are racing to capitalize on this trend.
– Crypto IPOs: Firms like OKX explore traditional finance integrations, while struggling small-cap companies rebrand as crypto enterprises for survival.
👉 Explore how OKX is bridging crypto and traditional finance
Policy Landscape
Global Highlights
- Hong Kong: Released Digital Asset Development Policy Declaration 2.0, reaffirming its ambition to become a global digital asset hub. Local and mainland Chinese firms (e.g., Ant Group, JD.com) are expanding stablecoin initiatives.
- China: Blockchain policies declined 61.66% YoY, signaling a shift from infrastructure-building to specialized applications (e.g., data governance, smart supply chains). Shanghai led regional policy efforts, drafting 11 of 15 local regulations.
Trends:
- Maturity Indicator: Fewer policies reflect matured blockchain infrastructure and market-driven growth.
- Capital Shifts: Government-led incentives phase out, pushing industries toward self-sufficiency.
Investment & Funding
2025 Mid-Year Snapshot
| Category | Funding (USD) | Share (%) | # of Deals |
|---|---|---|---|
| Digital Assets | $791.68B | 72.81 | 135 |
| Blockchain Apps | $118.27B | 10.88 | 196 |
| Base Tech | $104.04B | 9.57 | 63 |
Insights:
– Record Funding: $1.09T raised in H1 2025—near 2022’s annual total—with digital assets dominating (72.81% share).
– Compliance Impact: Regulatory clarity fuels capital influx despite macroeconomic headwinds.
Real-World Assets (RWA) Expansion
Market Metrics (June 2025)
- Total RWA Market Cap: $244.4B (+55.6% since January).
- Top Asset Classes:
- Private Credit (58.5%, $143B)
- U.S. Treasuries (30.27%, $74B)
- Blockchain Dominance: Ethereum hosts 58.7% of RWA projects ($75B).
Challenges:
– Asset concentration in credit/treasuries limits diversification.
– Institutional dominance sidelines smaller players.
👉 Discover how Ethereum powers RWA innovation
Digital Yuan Accelerates Global Push
China’s central bank announced a Digital Yuan International Hub in Shanghai, aligning with Shenzhen’s cross-border CBDC trials. Strategic moves aim to:
1. Counter stablecoin-driven dollar dominance.
2. Enhance yuan’s role in global settlements.
Expert Take: Synergy with Hong Kong’s stablecoin ecosystem could reshape international finance.
FAQ Section
Q1: Why did BTC drop below $100K in June?
A1: Geopolitical tensions in the Strait of Hormuz triggered short-term risk-off sentiment.
Q2: What’s driving stablecoin growth?
A2: Regulatory breakthroughs (e.g., U.S. Stablecoin Act) and corporate IPOs like Circle.
Q3: How mature is China’s blockchain sector?
A3: Declining policy volume signals infrastructure maturity, with focus now on niche applications.
Q4: Which RWA assets are most popular?
A4: Private credit (58.5%) and U.S. Treasuries (30.27%) dominate.
Q5: How does digital yuan compete with stablecoins?
A5: China’s cross-border CBDC projects offset dollar-centric stablecoin advantages.
Q6: Why is Ethereum leading in RWA?
A6: Its robust tech stack and institutional trust make it the preferred platform.
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