US May CPI data fell short of expectations across the board. Data released on Wednesday showed: May CPI annual rate at 2.4%, below the expected value of 2.50%, higher than the previous value of 2.30%; Core CPI annual rate at 2.8%, below the expected value of 2.90%, unchanged from the previous value of 2.80%. After the data was released, the market increased bets on rate cuts beginning in September, generally expecting two rate cuts this year. Trump stated: The Federal Reserve should cut rates by 100 basis points, which would significantly reduce the interest on maturing debt, it's too important.
Back to the point.
Reporter Eleanor Terrett stated: The US CLARITY Act (Digital Asset Market Clarity Act) has passed the Financial Services Committee with 32 votes in favor and 19 votes against. The bill will next be submitted to the House of Representatives for a full vote. The US Federal Appeals Court suspended a ruling that blocked Trump's tariff powers, meaning that Trump's tariff measures may still remain in effect during the appeal process. The appellate court approved an expedited review of Trump's tariff powers, with a hearing scheduled for July 31. The US Securities and Exchange Commission (SEC) announced the initiation of procedures to review the Bitwise BTC and ETH mixed ETF listing application submitted by the NYSE. On June 11, Musk tweeted: "I regret some of the posts about Trump made last week, as they were excessive." Yesterday, Trump stated: "I haven't thought about talking to Musk, I guess Musk might want to talk to me now." The UK Insolvency Service has appointed its first dedicated cryptocurrency expert to help recover more funds for the UK economy through bankruptcy cases. Société Générale–Forge, a crypto subsidiary of Société Générale, announced the launch of a dollar-pegged stablecoin on the ETH and Solana blockchains.
European BTC reserve company The Blockchain Group received shareholder approval on June 10 to immediately raise over 10 billion euros (approximately 11 billion USD) for BTC reserves. Note: The total market capitalization of Blockchain Group SA is 498 million euros. Cryptoquant analyst Crypto Dan stated that US investor buying interest is increasing, and there are no signs of overheating in BTC's current trend, indicating a common form in the rise cycle after a correction, suggesting that the market may continue to remain optimistic. Strategy CEO Michael Saylor stated: BTC will no longer experience a bear market; winter will not come again. Trump is determined to support BTC, the cabinet supports BTC, Treasury Secretary Besant supports BTC, and SEC director Paul Atkins has also shown enthusiasm for BTC and digital assets; BTC has passed its most risky period. Bitwise researchers André Dragosch and Ayush Tripathi stated that BTC is expected to surpass 200,000 USD by the end of the year and reach its estimated fair value of 230,000 USD. The surge in US federal debt, mandatory spending exceeding income, along with Trump's proposed "Beautiful Law" tax reduction plan, are key factors for their bullish outlook on BTC. The US Congressional Budget Office (CBO) predicts that net interest expenditures will grow to 3 trillion USD by 2030, raising market concerns about US sovereign default. If these trends continue, BTC is expected to exceed price expectations by the end of the year.
US Treasury Secretary Besant stated that the US will reach its debt ceiling deadline (X-Date) sometime between mid-summer and late summer this year. On June 10, US BTC spot ETF inflows amounted to 431.2 million USD, and ETH spot ETF net inflows were 125 million USD. Last week, funds flowing into digital asset investment products totaled 286 million USD, with a cumulative inflow of 11 billion USD over 7 weeks. A Bernstein report stated that in the past 20 days, ETH ETF inflows reached 815 million USD, with annual net inflows turning positive at 658 million USD, reflecting rising market interest in ETH ETFs. Blockworks reported that the SEC has requested the issuer of the proposed spot Solana ETF to submit a revised S-1 form within the week, which may lead to the approval of the Solana ETF within 3 to 5 weeks; the SEC also seems willing to accept proposals that include staking mechanisms. SEC director Paul Atkins, at a roundtable discussion titled "DeFi and the American Spirit," stated how decentralized finance (DeFi) aligns with American values: economic autonomy, private property rights, and innovation are central to the DNA of DeFi, and developers of neutral tools should not be held liable for third-party actions, nor should engineers be bound by federal securities laws solely for releasing such software code.
US May CPI data fell short of expectations across the board. Data released on Wednesday showed: May CPI annual rate at 2.4%, below the expected value of 2.50%, higher than the previous value of 2.30%; Core CPI annual rate at 2.8%, below the expected value of 2.90%, unchanged from the previous value of 2.80%; May CPI monthly rate at 0.1%, below the expected value of 0.20%, lower than the previous value of 0.20%; May Core CPI monthly rate at 0.1%, below the expected value of 0.30%, lower than the previous value of 0.20%. After the data was released, the market increased bets on the Federal Reserve starting to cut rates in September, generally expecting two rate cuts this year. Trump stated: The Federal Reserve should cut rates by 100 basis points, which would significantly reduce the interest on maturing debt, it's too important. Vice President Vance said: The Federal Reserve's refusal to cut rates is a misstep in monetary policy. Treasury Secretary Besant said: The May CPI data is another great inflation data point. Hedge fund giant Paul Tudor Jones said Trump will choose a very dovish Federal Reserve head. Morgan Stanley strategist Michael Wilson stated: A significant improvement in corporate earnings prospects is a positive factor for the S&P 500 index's performance before the end of the year, reaffirming his 12-month target price of 6500 points (currently 6050 points). Goldman Sachs strategist David Kostin said: Recent market trends indicate that the market is digesting optimistic growth prospects, with economically sensitive sectors outperforming defensive sectors. Wall Street strategists are increasingly optimistic about US stock indices, believing that economic growth resilience will limit summer pullbacks.
On Wednesday, US stock indices opened, with the Nasdaq index slightly up 0.13, the S&P 500 index up 0.22%, and the Dow Jones index up 0.56. BTC increased by 0.7%, reaching 110,000 USD; ETH rose by 4.5% to 2,870 USD. Trump continues to pressure Powell to follow the European Central Bank's lead and reduce borrowing costs this year by a full percentage point, calling Powell a "disaster." The Fed's favored inflation measure, PCE inflation, fell to 2.1% last month, with CPI falling short of expected values ahead of the Fed's meeting next Thursday. Trump is pressing hard, and if the next two data points continue to decline steadily, it seems the Fed will have no choice but to cut rates in September, with risks easing and transitioning to favorable conditions, waiting for a bullish return. Wishing for a smooth summer.