Bitcoin overall trended higher this week, breaking through 10,000 to reach a high of 104,359, marking the fifth consecutive week of gains.
At the beginning of the week, Bitcoin fell due to uncertainties surrounding the trade situation.
On Tuesday, it fluctuated around 930-950.
From Wednesday, due to market optimism about trade negotiations, Bitcoin saw a short-term increase of 3,000.
Early Thursday, due to the Fed's inaction, Powell sent a hawkish signal, reiterating willingness to wait for clearer prospects before taking action, leading to a rapid rise in Bitcoin.
Yesterday, on Friday, Bitcoin rose nearly 5,000 in the morning, beginning to fluctuate below 105,000, with overall volatility ending Bitcoin's upward momentum.
Ethereum moved in tandem with Bitcoin, but during the upward movement on Thursday and Friday, Ethereum surged significantly, surpassing Bitcoin with an increase of over 20%, as the market predicts that the timing for altcoins is becoming suitable!
Key news from last week
1. The Fed remains inactive; Powell faces Trump's 'sarcastic remarks.' On May 8, the Fed announced it would keep the benchmark interest rate unchanged at 4.25%-4.50%, marking the third consecutive meeting of inaction, in line with market expectations.
According to CME's 'Fed Watch', the probability of the Federal Reserve maintaining interest rates in June is about 80%. The Fed's statement noted that despite fluctuations in net exports affecting the data, recent economic activity continues to expand robustly, the labor market is strong, unemployment remains low, and inflation levels are still slightly high.
The committee reiterated its dual mandate of maximum employment and a 2% inflation target, noting that the uncertainty surrounding the current economic outlook has increased, with rising dual risks of unemployment and inflation.
Subsequently, Powell mentioned the word 'wait' 22 times in his remarks to emphasize that the Fed is not in a hurry to act. He stated that the current uncertainty in interest rate policy requires the Fed to continue waiting, and all committee members support a patient wait-and-see approach.
He pointed out that the cost of waiting is very low, and the Fed does not need to rush to adjust interest rates. In some cases, rate cuts this year may be appropriate, but they may also not be. Currently, one cannot confidently assert the best rate path.
In this week's White House speech, Trump once again fiercely criticized Powell, stating that conversations with Powell are like 'playing music to a cow' and gave him a new nickname—'Too Late Powell.'
2. The U.S. and U.K. reached a trade agreement, while the EU threatened to impose tariffs on $100 billion worth of U.S. products. On May 8, the U.S. and U.K. reached a new trade agreement involving tariff reductions in certain areas and expanded market access, but details are pending and the U.S.'s 10% 'reciprocal tariff' has not been canceled.
The British side stated that the agreement includes tariff reductions on steel and aluminum exports from the U.K., as well as on U.S. ethanol, with zero tariffs on U.K. agricultural products within specific quotas. The U.S. Secretary of Commerce indicated difficulties in advancing trade agreements with Japan, South Korea, and India.
Additionally, on May 7, the EU threatened that if tariff negotiations with the U.S. break down, it would impose retaliatory tariffs on nearly $100 billion worth of U.S. goods.
3. Trump meets with Canadian Prime Minister Carney, raising attention on 'annexing Canada' and tariff disputes. On May 6, Canadian Prime Minister Carney visited the U.S. and met with Trump at the White House.
At a press conference, Trump bluntly stated that if Canada became the 51st state of the U.S., it would be a 'wonderful combination.' Carney quickly responded that 'Canada is not for sale,' and Trump jokingly said, 'Never say never.' The two sides exchanged sharp words regarding trade disputes, with Carney reminding the U.S. that 'Canada is the largest customer,' while Trump insisted that 'we don't need Canadian cars or steel,' refusing to exempt Canadian goods from tariffs.
Previously, Trump questioned on social media why the U.S. subsidizes Canada $200 billion each year and provides free military protection.
4. The Bank of England has cut interest rates again to 4.25%. On Thursday, the Bank of England announced a 25 basis point reduction in the benchmark interest rate to 4.25%, marking the fourth rate cut this year, in line with market expectations. Bank Governor Andrew Bailey stated that the easing of inflation pressures provides space for moderate monetary policy, but given global economic uncertainties, future rate cuts will be 'gradually cautious.'
After the shock from the market, Bitcoin stabilized around 103,000, Ethereum fluctuated above 2,300, and Yumi adapted to the market rebound early in the week, starting to operate according to market corrections from Wednesday. This week, Bitcoin closed at 15,387, Ethereum at 888, and as Bitcoin and Ethereum reached new highs since February, public attention focused on them, while Yumi's workload also rapidly increased, with investors joining en masse, achieving value growth and flipping within just a few days.
