Bitcoin Lags While Hang Seng Rallies on U.S.–China Trade Optimism; Eyes on U.S. Inflation

Key Highlights:

Asian markets surged on hopes of progress in U.S.–China trade talks, but crypto showed little reaction.

Hong Kong’s Hang Seng index rose above 24,000 for the first time since March—up 1.3% on optimism from U.S.–China delegations meeting in London .

Meanwhile, China’s consumer prices fell 0.1%, and factory-gate prices dropped 3.3%, fueling deflation concerns and drawing attention to potential stimulus measures .

All eyes are now on the U.S. consumer price index (CPI) release, with core inflation expected to rise slightly due to tariffs on goods .

Crypto Markets Update:

Bitcoin (BTC) hovered around $105,600–$105,650, printing a doji candle—a classic sign of indecision .

On-chain activity softened: daily transactions dropped to ~315K, a yearly low .

XRP struggled above $2.23, down about 1%, despite a breakout from a mid‑May resistance trendline. Volatility could increase with the upcoming XRP Ledger APEX 2025 conference in Singapore .

Dogecoin (DOGE) traded around $0.181, failing to clear its 100‑day moving average and dipping roughly 2% .

Analysis:

A surge in Asian equity markets suggests optimism around trade relations, but crypto remains range-bound as investors await fresh direction.

China’s deflation signals possible stimulus—supportive for risk assets if implemented, though impact on crypto remains uncertain.

The upcoming U.S. CPI report could shake markets: hotter data may delay Fed rate cuts, weighing on assets like Bitcoin.

Conclusion: Crypto markets remain in wait-and-see mode amid macro developments. The collision of trade optimism, China’s deflation, and looming U.S. inflation data creates an uncertain backdrop. A volatility spike may be on the horizon once CPI figures drop.

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