Recent data reveals an interesting trend: Ethereum (ETH) inflows to Binance have continued for five straight days, with these inflows prominently represented by Binance's orange bars.
Short-Term Holder Net Position Surge:
* Meanwhile, the chart shows a significant surge in the (STH) Net Position Realized Cap for Bitcoin, rising from over -$49 billion to more than $5 billion.
* This shift reflects aggressive accumulation by (STH), typically retail traders, who are significantly increasing their exposure to Bitcoin.
* Historically, spikes in (STH) occur near potential market tops, as retail investors tend to FOMO into Bitcoin rallies.
On the political front, Donald Trump’s recent statement announced that Republicans in the U.S. Senate are finalizing the “ONE, BIG, BEAUTIFUL BILL,” promising sweeping tax cuts—including no tax on tips, overtime, or Social Security income for seniors—while boosting military spending and domestic job creation.
Trump urged Congress to send the bill to his desk before July 4, framing it as a celebration of American economic strength. If passed, these tax cuts would inject more disposable income into households, potentially fueling consumer spending and short-term economic growth.
Musk’s Warning: Senate Bill Threatens Strategic Industries:
* However, Elon Musk’s response the next day expressed concern over the bill’s potential long-term consequences.
Long-Term Risks & Downsides:
- Massive tax cuts without matching spending reductions could exacerbate the federal budget deficit.
- The U.S. economy faces potential risks as growing deficits could result in unsustainable national debt, higher future interest payments.
In conclusion :
Geopolitical disturbances can significantly impact investor sentiment.
In response, investors might reconsider their positions in asset markets, possibly moving away from riskier assets and equities toward more stable options like bonds or safe-haven currencies.
Written by Amr Taha
