Harnessing Market Dynamics: The Convergence of AI-Driven Trading, Technology Stocks, and Cryptocurrency Insights

Hello, outstanding students of the Diamond Ridge Financial Academy!

I’m Charles Hanover. Welcome to Diamond Ridge Financial, where we believe that continuous learning is the key to successful investing. Tonight, let’s start with the UK stock market and explore the secrets of the investment world together.

Today, both the UK and US stock markets showed the expected divergence while the tech industry continued to shine.  

In the UK stock market, the FTSE 100 Index saw a slight dip in early trading, with retail and consumer goods under pressure. Primark’s parent company, Associated British Foods, lowered its growth outlook, reflecting the ongoing challenges from inflation, weak consumer confidence and currency fluctuations in the retail sector.  

However, despite the challenging market conditions, Primark remains confident in its future growth potential. It plans to boost revenue further by expanding into Europe and the US market. Similarly, JD Sports saw its stock price drop due to a rating downgrade and gross margin pressure, but these short-term challenges may not change the industry’s long-term recovery trend, especially as consumer demand gradually picks up. Companies like Rolls-Royce, which have successfully transitioned to the smart manufacturing industry, enjoyed steady gains. This helped the FTSE 100 Index close with a slight increase of 0.23%.

Meanwhile, US stock markets showed mixed performance. The Dow Jones Index edged higher, supported by heavyweights like UnitedHealth Group and Goldman Sachs. In contrast, the S&P 500 and Nasdaq Composite dipped due to adjustments in tech stocks. Tech giants like Nvidia and Microsoft appeared slightly weaker in the short term, but this hasn’t changed the positive long-term outlook for the sector.  

UBS analysts pointed out that investments in AI and digital infrastructure remain highly attractive despite policy uncertainties and inflation pressures causing short-term volatility. The $500B AI infrastructure plan proposed by the Trump administration has boosted confidence in the tech industry. Upcoming earnings reports from companies like Apple and Meta are also expected to create upward momentum in the market.

From a global economic perspective, geopolitical factors significantly impact the oil industry. Trump's comments on oil prices caused Brent crude oil to drop. This not only triggered short-term volatility in the energy market but also presented a promising opportunity for the growth of the renewable energy and tech sectors.  

From an industry standpoint, whether in the UK or US markets, the tech sector remains a key growth engine. As digital transformation deepens and AI technology becomes more widespread, the tech industry's role in economic recovery will become even more prominent. While policy shifts and macroeconomic fluctuations may bring short-term challenges, I still firmly believe in the long-term value of areas like AI, automation and renewable energy. These are not only the core drivers of long-term economic development but also the direction of our future investment trends.

Recently, some students asked me why I can always predict US stock market movements so accurately. The key isn't some mysterious trick but understanding how to look beyond the surface price swings and see the deeper logic behind them. You'll notice that many assets are somewhat interconnected. Take the global stock markets and crypto markets as an example. Their fluctuation trends are very similar. While the scale of their ups and downs might differ, the core logic driving them is fundamentally the same.

A clear example is the US, the world's largest economy. The Nasdaq Index almost mirrors BTC's price movements (as shown in the chart below). Their rise and fall often follow the same rhythm, and a keen observer can spot trends in one market by watching changes in the other. This is not a coincidence but a reflection of deeper logical connections.

Why are crypto and tech stocks so closely linked? To understand this, we need to look at their nature. Crypto didn’t just appear out of nowhere; it’s a natural product of modern tech development. In fact, it’s the result of advancements in the internet, AI, and the digital economy. More importantly, crypto is closely tied to the Fourth Industrial Revolution. We all know the First Industrial Revolution brought mechanised production, the Second led to electrification and mass production, and the Third was driven by IT and computers. The Fourth Industrial Revolution focuses on blockchain, AI, and quantum computing. Crypto’s emergence is a natural step from the Third to the Fourth Industrial Revolution.

From a development perspective, crypto isn’t just the fruit of technological progress; it also represents the future of the economy. If tech stocks are the backbone of Nasdaq, crypto’s tech essence is even purer. It’s not merely an investment asset but a testing ground for cutting-edge tech revolutions. Because of this, crypto can more sensitively capture market sentiment shifts brought by tech changes, resulting in faster and more dynamic price reactions than traditional stock markets.

This high sensitivity is one of the key reasons I can predict US stock trends accurately. For example, on Tuesday this week, the crypto market saw a strong rally, followed by a rise in US stocks after the market opened. Then, last night, the crypto market, led by BTC, pulled back, and today’s drop in US stocks after the market opened became an expected outcome. The crypto market acts like a sharper “leading indicator,” reacting to policies, macroeconomics, and tech events faster than the traditional stock market. That’s why I use crypto as an essential reference when analysing US stock trends.

From a global policy perspective, countries are actively pushing forward the process of asset tokenisation. Simply put, asset tokenisation uses blockchain technology to convert real-world assets (like stocks, bonds or real estate) into digital tokens. This not only improves transparency and efficiency in asset trading but also allows more people to participate in investments equally.

Singapore has become a global leader in asset tokenisation. The Monetary Authority of Singapore (MAS) has provided a safe testing environment for tokenisation through its FinTech regulatory sandbox. Its "Project Guardian," launched in collaboration with the financial sector, explores asset tokenisation's economic potential and applications. Through these efforts, Singapore has strengthened its leading position in this field.

Switzerland is also at the forefront. Through its "Blockchain Act," Switzerland has provided a comprehensive legal framework for asset tokenisation. The Swiss Financial Market Supervisory Authority (FINMA) openly supports the issuance of tokenised securities and provides clear guidance. This makes Switzerland an ideal destination for blockchain and tokenisation projects, attracting many companies to develop their businesses there.

The US has adopted a more decentralised regulatory model. Although there isn't a unified framework at the federal level yet, some states have taken the lead. For example, Wyoming has passed multiple laws related to digital assets, providing clear regulatory support for the issuance and trading of tokenised securities. This state-level exploration provides important references for future federal laws and creates a good testing environment for innovative companies.

The European Union is drafting the "Markets in Crypto-Assets Regulation" (MiCA). Although this regulation doesn't focus specifically on asset tokenisation, it offers a systematic framework covering various aspects of digital asset regulation. This framework is expected to have a far-reaching impact on tokenisation development in Europe and may set regulatory standards for other regions globally.

Some emerging markets are even starting to recognise the potential of asset tokenisation. For example, the Lagos State Government in Nigeria has proposed plans to tokenise real estate. This innovative move aims to use blockchain technology to increase transparency and efficiency in real estate transactions while reducing costs. It not only helps improve the local investment environment but also brings additional revenue to the state.

Major financial institutions on Wall Street have also played a leading role in this area. For example, in an interview at the World Economic Forum in Davos, BlackRock CEO Larry Fink recently expressed his support for the US Securities and Exchange Commission to approve the tokenisation of bonds and stocks. He was clear in his view: through tokenisation, financial assets can be turned into digital tokens on a blockchain network. This approach will fundamentally change how investments are accessed and managed, allowing more people to participate in the financial markets.

This is a grand plan aiming for "investment democratisation." Fink noted that tokenisation not only makes investments more accessible but also greatly enhances efficiency. However, regulatory approval and market acceptance remain key challenges to achieving this goal. From a global perspective, asset tokenisation is undoubtedly the way forward. This transformation makes financial asset management more transparent and efficient while offering fairer opportunities to ordinary investors. It's one of the critical directions for the future of the financial industry, and Crypto plays an irreplaceable role in this process.

Tokenization is highly praised globally because of its unmatched advantages. It not only boosts the efficiency of financial transactions but also significantly reduces transaction costs while greatly increasing transparency, opening the door to high-end financial markets for more ordinary investors. Tokenization truly achieves the democratization of investment, giving every investor more equal opportunities.

As BlackRock CEO Larry Fink pointed out at the World Economic Forum in Davos, through tokenization, bonds and stocks can be converted into digital forms, significantly lowering the investment threshold and allowing ordinary people to participate in the capital markets. This trend will undoubtedly reshape the financial market landscape and bring profound changes to investment management.

Moreover, the unique advantages of the crypto market in terms of trading rules make it even more attractive. Unlike traditional stock markets with fixed trading hours, the crypto market operates 24/7. This round-the-clock trading mode allows the market to quickly absorb news worldwide. Any sudden event, whether it's the release of major economic data or changes in geopolitical situations, can be immediately reflected in the price fluctuations of crypto. This efficient information response mechanism makes trading decisions more timely and accurate, creating conditions for investors to capture more market opportunities.

Another notable feature of the crypto market is its decentralization advantage. Since no single institution or country can fully control the crypto market, trading becomes more transparent and significantly reduces the possibility of human interference. This means regular investors can enjoy a fairer competitive environment than traditional financial markets. For quantitative trading systems, this transparent market structure is especially important. It can gather public market information in real time and make quick decisions, not only improving the system's response speed but also significantly increasing the success rate of trades. For regular investors, this fairness and transparency make the crypto market more likely to offer higher returns.

In this context, the first round of our quantitative trading system public test is nearing its end. The first round of testing is officially ending tonight. Although the number of participants wasn't very large, the results were very satisfying. Despite the recent complex and volatile market conditions, the quantitative trading system has shown strong capabilities in terms of sensitivity and accuracy. Participants in the public test generally displayed high levels of profitability, with many making over 30% profit in just three days, which has them very excited.

However, many participants have mentioned that the testing period was too short. While the profits were considerable, they didn't have enough time to test it fully, and they hope the testing period can be extended for a few more days. However, we must follow the plan strictly. On the one hand, the fund for the first round of public testing is under certain pressure and on the other hand, we can only open up more spots for the second round of testing after the participants from the first round return the principal and 70% of the profits.

The second round of public testing will officially start tomorrow. The main focus of this round is to verify the system's capacity and big data processing capabilities, so we need more active participation from the students. The public test period will be extended to four trading days to collect more comprehensive data and thank everyone for their support. It will start tomorrow and end next Wednesday.

Looking at the data from the first round, it's clear that our quantitative trading system has performed exceptionally. The potential return rate for the second round is projected to reach an impressive 50%. This means that each participant, after receiving a $2K public test fund, could potentially make over $1K in profit during the test. According to the public test rules, participants will directly receive a profit share of over $300, and the project side will bear all trading risks.

To ensure the test's authenticity and the data's reliability, we have set higher requirements for participants. All participants must open a public test trading account in advance and become familiar with the system's interface and operation rules. More importantly, every trade must strictly follow the trading signals provided by the system to avoid any human interference, which could affect the results. At the same time, we encourage everyone to avoid trades outside of the system signals. This not only guarantees the accuracy of the test but also allows participants to maximize the benefits brought by the system. From the experience of the first round of testing, participants who strictly followed these rules not only avoided risks but also made significant profits.

This round of public test is not just a full-scale test of the technology but also an unprecedented profit opportunity. The success of the first round has proven the system’s potential, and the larger scale and more complex data environment of the second round will further showcase the system’s powerful capabilities. We hope every participant seizes this chance and fully prepares by familiarizing themselves with the trading platform and rules, ensuring they are ready for the upcoming challenges.  

The second round of public test is the perfect example of combining technology with wealth. It’s not just a test but also an in-depth learning experience about markets, technology and investment strategies. Whether you’re a beginner or an experienced investor, this opportunity will open the door to the future world of investing for you.

Tonight’s discussion aims to help everyone better understand the close connection between the crypto market and tech stocks. This connection is not only driven by technological innovation but also reflects the global economic transformation. The crypto market’s sharp responsiveness provides a unique perspective for predicting trends in other asset classes. In this rapidly changing era, recognizing the links between these assets and seizing the opportunities brought by the technological revolution is the key to growing wealth.

At the same time, I sincerely invite all participants to join the second round of public test. This is not just a rare chance to experience one of the world’s most advanced quantitative trading systems firsthand but also a valuable real-world trading practice. When the market bell rings tomorrow, I hope to see everyone actively participating with enthusiasm and action.

Let’s work together to witness the leap in technology and the growth of wealth. Believe in yourself, trust the system, and take decisive action to seize this opportunity! The second round of public test awaits your participation!