Last week, under Yumi's continuous operations, Bitcoin achieved great results with 25,006 transactions in one space and 923 transactions in another, with partners who have been cooperating since last year also improving significantly.
Yumi reiterates that we should bear difficulties together; I will help you strategize to solve problems. Once the direction and path are right, what remains is effort and persistence. I hope we can work hard together again next week!
Last week's major events are as follows:
1. Trade policy impact: On Friday, Trump proposed imposing a 50% tariff on EU goods starting June 1, 2025, threatening a 25% tariff on Apple, citing that the EU has caused the U.S. annual trade deficit to exceed $2.5 billion, while U.S.-made goods would be exempt. The news triggered market turbulence, causing European stock markets to plummet, with traders expecting the European Central Bank to cut rates three times in 2025. Previously, the EU proposed to resume trade negotiations, but the U.S. Secretary of Commerce believes some details will be difficult to reach an agreement on.
2. Difficult passage of the bill: On May 22, Eastern Time, the U.S. House of Representatives narrowly passed Trump's 'Beautiful America Act' with a vote of 215 to 214. To ensure the bill's passage, Republican Speaker Johnson made last-minute amendments to balance party interests. The Senate plans to vote by August at the latest, and it is expected to increase the tax reduction. The bill aims for comprehensive tax cuts and spending reductions but may exacerbate risks in the U.S. Treasury market.
3. Education policy controversy: The Trump administration banned Harvard University from enrolling international students, citing unsafe campus conditions, and revoked its Student and Exchange Visitor Program certification. International students currently enrolled face transfer requirements; otherwise, they will lose their legal status. Harvard has sued Trump, with the president stating that international students are vital to Harvard, and this ban will severely impact U.S. higher education.
4. Monetary policy dynamics: The U.S. Supreme Court ruled that the Federal Reserve is a 'structurally unique quasi-private entity,' limiting the president's ability to arbitrarily dismiss Fed officials while retaining some power. Several Fed officials have expressed hawkish signals, suggesting that there will be no interest rate cuts before at least September. However, Waller stated that if tariffs stabilize around 10%, there could be rate cuts in the second half of 2025. The money market expects two rate cuts this year, each by 25 basis points, with a 94.6% probability of maintaining the interest rate unchanged in June.
5. U.S.-Japan trade competition: Japan's Minister of Economic Revitalization, Akizawa Ryo, will visit the U.S. from May 23 to 25 to initiate the third round of tariff trade negotiations between the U.S. and Japan. Akizawa emphasized that Japan will not make unilateral concessions on matters involving national interests and urged the U.S. to reconsider its tariff policy.
A new storm is coming; be prepared to face a stronger challenge next week.
Next week, Federal Reserve dynamics:
On Monday at 2:40, Federal Reserve Chairman Powell will deliver a commencement address at Princeton University's graduation ceremony.
On Tuesday at 16:00, 2026 FOMC voter and Minneapolis Fed President Kashkari will participate in a policy group discussion at the Bank of Japan's Financial Research Institute meeting and deliver a speech.
On Wednesday at 8:00, FOMC permanent voter and New York Fed President Williams will participate in a group discussion at the Bank of Japan's Financial Research Institute meeting.
On Wednesday at 16:00, 2026 FOMC voter and Minneapolis Fed President Kashkari will participate in a dialogue and Q&A event at Keio University.
On Thursday at 2:00, the Federal Reserve will release the minutes from the May monetary policy meeting.
On Thursday at 20:30, 2027 FOMC voter and Richmond Fed President Barkin will participate in a fireside chat.
On Thursday at 22:40, 2025 FOMC voter and Chicago Fed President Goolsbee will participate in a Q&A session.
On Friday at 4:00, 2027 FOMC voter and San Francisco Fed President Daly will participate in a fireside chat related to the economy with the Oakland Rotary Club.
On Friday at 8:25, 2026 FOMC voter and Dallas Fed President Logan will give an opening speech for an event and participate in a dialogue.
Next week, investors will also closely examine the FOMC meeting minutes from the Federal Reserve's May policy meeting. However, the minutes are unlikely to provide any new clues as most policymakers have already expressed their views since the last meeting, indicating a wait-and-see stance.
On Wednesday, U.S. Vice President Vance will attend the 'Bitcoin 2025' conference in Las Vegas on May 28 and deliver a speech.
While serving as a senator, Vance opposed excessive regulation and worked to reshape the U.S. government's relationship with open-source currencies. This speech is expected to focus on innovation, financial sovereignty, and the significance of Bitcoin for the future development of the U.S.
The 2025 Bitcoin Conference is expected to attract over 30,000 attendees, with leaders from various fields such as technology and finance gathering. Previously, political figures like Trump and industry pioneers have also taken the stage at this conference.
Recently, due to the advancement of stablecoin legislation in the U.S., an influx of institutional funds, and improving macroeconomic conditions, the price of Bitcoin briefly surpassed $110,000 last week, reaching a new high for this year. However, influenced by a Trump tweet, the price retreated on Friday.
However, the options market shows strong bullish sentiment among traders, with open interest reaching a historical high. As of Friday, the total value of unexpired Bitcoin options contracts reached $48.2 billion. Data from the Deribit exchange indicated a surge in open interest for Bitcoin call options with a strike price of $300,000 expiring on June 27.
Next Friday, the first U.S. personal consumption expenditures (PCE) inflation and consumption data since Trump's 'Liberation Day' will be released. Core PCE is the Federal Reserve's preferred inflation indicator, but it is difficult to see the Fed take a more decisive action on interest rates without changes in core inflation. In fact, most of the inflation pressure brought by tariffs takes time to transmit to the data, so it may take a few months to understand the impact of Trump's tariffs on price growth.
In summary, next week will focus on events on Wednesday and Friday, with various events and data reports about to be released. Let's look forward to market movements and Bitcoin and Ethereum achieving new heights!
Yumi's little tips: Due to Memorial Day in the U.S., the stock market will be closed on Monday. At 02:30 Beijing time on the 27th, trading in precious metals and U.S. crude oil futures contracts at the CME will be suspended; at 01:00, stock index futures contracts will be suspended. On the same day at 01:30, trading in Brent crude oil futures contracts at the Intercontinental Exchange will end early. Additionally, due to the Spring Bank Holiday, the UK stock market will also be closed on Monday.
On Friday, due to the Dragon Boat Festival, the Taiwan stock market will be closed for one day, and there will be no night trading on the Shanghai Gold Exchange, Shanghai Futures Exchange, Zhengzhou Commodity Exchange, and Dalian Commodity Exchange.