This Week In Crypto
From Pizza Day to Power Brokers
Abstract
The convergence of traditional finance, decentralised technologies, and AI is accelerating, prompting new questions around institutional alignment, geopolitical tension, and technological sovereignty. This report analyses five recent developments: Bitcoin overtaking Amazon in market capitalisation, US megabanks discussing a joint stablecoin project, China's deployment of AI-powered combat robots, Donald Trump's dinner with memecoin influencers, and the IMF’s cautious engagement with El Salvador despite ongoing Bitcoin purchases. Together, these stories underscore the tension between legacy institutions and decentralised alternatives, and the complex incentives shaping the future of money, power, and technology.
1. Bitcoin Tops Amazon’s Market Cap
On May 22, Bitcoin Pizza Day, Bitcoin's market capitalisation briefly surpassed that of Amazon, placing BTC just below tech behemoths like Microsoft and Apple. This symbolic milestone illustrates Bitcoin's evolution from an internet novelty to a macro asset class. Unlike tech equities that generate cash flows, Bitcoin remains a non-productive store of value—a dynamic that continues to divide investors. Yet, BTC’s monetary premium appears increasingly legitimised in the eyes of global capital, fuelled by ETF flows, sovereign interest, and persistent distrust in fiat regimes.
Implication: Bitcoin’s position is no longer just ideological. It's structural, supported by global market infrastructure and increasingly perceived as digital gold by institutional allocators.
2. US Megabanks Explore Joint Stablecoin
According to the Wall Street Journal, major US banks, including JPMorgan and Wells Fargo, are exploring a unified stablecoin initiative, intended for interbank settlements. This marks a notable shift from public dismissals of crypto to strategic engagement. Unlike public stablecoins like USDT or USDC, a bank-backed instrument could remain siloed within TradFi systems, bypassing public blockchains and DeFi protocols.
Implication: The initiative could bifurcate the stablecoin landscape—public vs. private, permissionless vs. permissioned—raising existential questions about financial sovereignty, access, and control.
3. China’s AI-Powered Combat Robots
While not directly a financial story, China’s rollout of AI-powered boxing robots for national training programmes is a stark reminder of the broader AI arms race. These robots combine precision, pattern recognition, and kinetic capabilities—raising both military and economic alarms in the West. Their existence reaffirms the growing synergy between AI, national security, and industrial competitiveness.
Implication: Sovereign AI strategies will increasingly dictate not only military advantage but economic leverage. Blockchain, by contrast, is being framed as an open-source counterweight to such centralised powers.
4. Trump’s Dinner with Memecoin Influencers
Donald Trump’s private dinner with leading memecoin influencers and NFT entrepreneurs sparked backlash and speculation. Trump, once a crypto sceptic, is now signalling strategic alignment with Web3 communities ahead of the 2024 election. Whether this is political opportunism or a genuine ideological shift, the implications are serious: crypto is becoming a wedge issue in mainstream politics.
Implication: As regulatory uncertainty looms, partisan lines are being drawn in Washington, with memecoins becoming a new battleground for cultural capital.
5. IMF Greenlights Funds for El Salvador Despite Bitcoin Holdings
In a surprising move, the IMF approved a $120M disbursement to El Salvador despite President Bukele’s refusal to sell Bitcoin reserves. Previously, the IMF had urged the nation to wind down BTC exposure. This shift suggests either a recalibration of IMF policy or quiet resignation to Bitcoin’s role in sovereign finance.
Implication: Bitcoin is becoming too embedded in national policy to be dismissed outright. The IMF’s move signals a pragmatic détente between old and new financial orders.
Conclusion
The financial system is fragmenting and reconfiguring—at once centralising (through AI and state-backed digital currencies) and decentralising (through Bitcoin, memecoins, and DAOs). As institutions wrestle for control and legitimacy, market participants must adapt rapidly.
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