Bitcoin’s bumpy ride continued on Monday as it struggled to find its footing amidst a backdrop of buoyant Asian equities driven by renewed U.S.-China trade discussions. The leading cryptocurrency hovered near $105,650, exhibiting a pattern of indecision after forming a doji candle on Sunday, as per TradingView data. Meanwhile, the Hang Seng index in Hong Kong soared past the 24,000 mark for the first time since March, buoyed by optimism surrounding these critical trade talks. This optimism echoes sentiments from earlier this month when Bitcoin jumped above $97K as traders were hopeful about a potential U.S.-China trade deal.
Bitcoin Stagnates, XRP and DOGE Falter
Bitcoin isn’t the only crypto feeling the pressure. XRP, a payments-focused digital currency, failed to break out above a bearish trendline from its mid-May highs, trading at approximately $2.24—slipping over 1% in daily trading. This comes as the XRP Ledger’s APEX 2025 conference kicks off in Singapore, potentially bringing some volatility into the mix. Then there’s Dogecoin, the ever-volatile meme coin, which dipped nearly 2%, inching closer to 18 cents after failing to maintain momentum above its 100-day simple moving average over the weekend.
Blockchain.com’s recent data paints a bleak picture of Bitcoin’s network activity, with the seven-day average of daily on-chain transactions dwindling to around 315,480—the lowest in at least a year. This slowdown might signal broader market hesitations, especially as traders eye upcoming economic indicators from the U.S.
Asian Markets Rally Amid Trade Optimism
Meanwhile, in the world of traditional finance, Asian markets have found a reason to rally. The Hang Seng index climbed 1.3%, fueled by high hopes for the trade discussions unfolding in London this week. “Optimism is as high as it’s been since Trump’s election,” remarked Adam Button, Chief Currency Analyst at ForexLive, highlighting the market’s eagerness for positive developments. As noted in our recent analysis, Bitcoin traders are closely watching these developments, hoping for a breakout to new highs as tariff deals progress.
President Donald Trump echoed this sentiment on Truth Social, expressing confidence in the talks. Such optimism has rippled through other Asian indices like South Korea’s KOSPI and China’s Shanghai Composite, despite China grappling with deepening consumer and factory gate deflation.
China’s deflationary trend has been a point of concern, with consumer prices falling 0.1% year-over-year in May, marking the first negative turn since February. Factory gate prices have been in decline since October 2022, with Robin Brooks from the Brookings Institution pointing to U.S. tariffs as a significant deflationary catalyst for China. He noted that these tariffs could be pushing China toward full-on deflation, setting the stage for potential monetary easing from Beijing.
Looking Ahead: U.S. Inflation and Potential Market Impacts
As the world watches the ongoing trade talks, the focus will soon shift to the U.S. Consumer Price Index (CPI) for May, due this Wednesday. Analysts are keen to discern whether Trump’s tariffs are contributing to economic pressures at home. The CPI is expected to mirror April’s 0.2% month-on-month growth, translating to a yearly increase of 2.5%. However, core inflation may edge up to 2.9% from April’s 2.8%, as economists at Barclays anticipate potential tariff-related price surges in core goods.
Should the inflation data exceed expectations, it might thwart anticipated Fed rate cuts, injecting volatility into financial markets. Such developments could send ripples through both traditional and crypto markets, making it a crucial week for traders and investors alike.
As Bitcoin and its fellow cryptocurrencies navigate these turbulent waters, the interplay between geopolitical developments and macroeconomic indicators will likely dictate their next moves. With so many moving parts, the crypto market seems poised for anything but a dull moment. Whether it’s the promise of further Chinese stimulus or the realities of U.S. inflation, the coming days promise to be anything but predictable.
Source
This article is based on: Bitcoin Struggles as Hang Seng Cheers U.S.-China Trade Talks; U.S. Inflation Eyed
Further Reading
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- Stagflationary Data Puts Pressure on Bitcoin, Stocks
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
