Data released on Friday showed: The U.S. April PCE price index was 2.1%, lower than the previous value of 2.3% and the expected value of 2.2%; the April core PCE price index was 2.5%, lower than the previous value of 2.7% but in line with the expected value of 2.5%, reaching a new low since March 2021. Fed's Daly stated that if the labor market remains strong and inflation declines, it would be reasonable to have two rate cuts this year. Fed's Goolsbee stated that if tariffs could be avoided through agreements or other means, it might return to a situation where rate cuts could be possible.
Returning to the main topic:
The Republican Party in the U.S. House of Representatives proposed a crypto market structure bill, namely the (Digital Asset Market Clarity Act), which gives the U.S. Commodity Futures Trading Commission (CFTC) primary regulatory authority over the digital commodity spot market, while requiring crypto platforms to choose registration with the CFTC or the U.S. Securities and Exchange Commission (SEC) based on the type of trading assets. The bill excludes certain DeFi projects and wallet providers from SEC regulation; prohibits custodial institutions from listing client assets on their own balance sheets; and clarifies that payment stablecoins do not fall under the category of securities. The Hong Kong government published the (Stablecoin Regulation) in the official gazette, meaning that the (Stablecoin Regulation) officially becomes law, further improving the regulatory framework for digital asset activities in Hong Kong. The Hong Kong Legislative Council officially passed the ordinance draft on May 21 to establish a licensing system for fiat-backed stablecoin issuers in Hong Kong. New York City Mayor Eric Adams called for the abolition of the BitLicense crypto licensing system issued by the New York State Department of Financial Services (NYDFS) at the Bitcoin 2025 conference and proposed the idea of issuing BTC municipal bonds called 'BitBond'. Australia's Monochrome spot BTC ETF has reached a position of 666 BTC, valued at 111.5 million Australian dollars.
Payment giant MoneyGram's CEO stated that the stablecoin bill will be a huge breakthrough for business development. Wall Street investment bank Cantor Fitzgerald announced it will launch a gold-hedged BTC fund, which is the institution's first BTC-themed investment product. Glassnode reported on May 29 that investors in BlackRock and Fidelity's spot ETH ETFs are currently facing an average unrealized loss of about 21%. The cost basis for BlackRock's spot ETH ETF is $3,300, while Fidelity's is $3,500. The current ETH price is about $2,600. CryptoQuant analyst Axel Adler Jr. stated: BTC market demand is approaching the peak levels of the last bull market, with an average of about $1.8 billion flowing into the market daily, comparable to the levels seen in November 2021, indicating that even after reaching an all-time high, investors remain willing to deploy on a large scale. Bloomberg ETF analyst Eric Balchunas stated that IBIT's 90-day rolling volatility is declining and has never been this low; this low volatility combined with rising prices is attracting larger funds to enter the market, rather than large investors in U.S. tech stocks. Over the past six weeks, the capital inflow attracted by IBIT has far exceeded the average level of other ETFs. On May 29, the U.S. BTC spot ETF saw an outflow of $346.8 million, marking the first outflow in nearly ten days. Among them, BlackRock's IBIT saw an inflow of $125.1 million, Fidelity's FBTC saw an outflow of $166.3 million, and Grayscale's GBTC saw an outflow of $107 million; U.S. ETH spot ETF saw an inflow of $91.9 million, with ETH ETFs inflowing for nine consecutive days, accumulating a total inflow of $486 million.
ETF Store President Nate Geraci stated: BlackRock's BTC Spot ETF IBIT has seen inflows of nearly $9.5 billion in the past month, ranking among the top five ETFs this year (out of over 4,200 ETFs). Bloomberg Senior ETF Analyst Eric Balchunas: IBIT currently has a size of $72 billion, ranking 23rd on the overall ETF list, which is an exaggerated achievement for an ETF that has only been established for a year. (Washington Post) reported that as of May 28, the U.S. government holds approximately $20.4 billion in BTC and $493 million in other digital assets. Trump Media Group stated: It has completed its previously announced private placement with about 50 institutional investors, raising approximately $2.44 billion, of which about $2.32 billion is used to establish BTC reserves and for other general business purposes and operations. U.S. Vice President Vance stated at the Bitcoin 2025 conference: '(GENIUS Act) implementation is expected to significantly expand the application of stablecoins as a digital payment system, protecting holders and enhancing market transparency, with about 50 million Americans holding BTC, and this number is expected to increase to 100 million soon.' Goldman Sachs Partner and Galaxy Digital Founder Mike Novogratz stated: Strong institutional inflows, a weak dollar, and growing demand for digital assets are the main drivers of BTC, with the next expected price being $130,000 to $150,000. BitMEX Co-founder Arthur Hayes stated that if the Federal Reserve resumes quantitative easing (QE) policies, BTC prices could rise to $250,000 by 2025.
From suspension to revival in just 20 hours. On Thursday, a U.S. federal court ruled to suspend most of Trump's tariffs. But only by Friday, the U.S. Court of Appeals temporarily stayed the ruling of the U.S. International Trade Court, delaying the lower court's ruling until at least June 9, when both parties will submit legal arguments on whether the case should be suspended, and the appeals court will weigh in on the issues in the case. Data released on Friday showed: The U.S. April PCE price index was 2.1%, lower than the previous value of 2.3% and the expected value of 2.2%; the April core PCE price index was 2.5%, lower than the previous value of 2.7% but in line with the expected value of 2.5%, reaching a new low since March 2021. Federal Reserve mouthpiece Nick Timiraos stated: Today's inflation report is 'excellent', with overall inflation continuing to decline slowly, consistent with the Fed's predictions from last year, and if not for widespread tariffs hindering this improvement, the report would have received applause at the Fed headquarters. Bloomberg reported: U.S. Treasury bonds rose, and the economy contracted early this year, intensifying market bets that the Fed would cut rates twice before early 2026. Traders still bet that the Fed will cut rates in September. Fed's Daly stated that if the labor market remains strong and inflation declines, it would be reasonable to have two rate cuts this year, but the range of potential risks remains large. Fed's Goolsbee stated that if tariffs could be avoided through agreements or other means, it might return to a situation where rate cuts could be possible.
Inflation PCE price index continues to decline, stabilizing expectations for two rate cuts this year. However, Trump's frequent inappropriate remarks led to a decline in U.S. stock indices on Friday, with the Nasdaq down 0.5% intraday, the S&P 500 down 0.1%, BTC down 1.1%, and ETH down 2.7%. After a period of inactivity, tariff concerns resurfaced repeatedly; after rate cut hopes ignited, they were repeatedly postponed; after the market rose, it became stagnant, and the process has not been smooth. The trend will not change, with the overall inflation PCE dropping to 2.1% and core inflation PCE dropping to 2.5%. Trump's 90-day tariff buffer period has progressed two-thirds, waiting for uncertainties to settle and return to the bull market main line. Hope for a smooth summer.