The U.S. May PPI month-on-month recorded 0.1%, lower than the expected 0.20%; the May PPI year-on-year recorded 2.6%, matching the expected value of 2.6%. The May core PPI month-on-month recorded 0.1%, lower than the expected 0.30%; the May core PPI year-on-year recorded 3%, lower than the expected 3.1%. Trump said: 'Powell is a fool, suggesting the Federal Reserve cut rates by 200 basis points. I will not fire Federal Reserve chief Powell; he just needs to lower the rates. The inflation data is performing well, and the U.S. has a large amount of short-term debt. If rates are lowered, it means less interest to pay.'

Back to the point:

The U.S. Senate passed the (GENIUS Stablecoin Act) by a procedural vote of 68 to 30, which will initiate full chamber debate and a final vote on the bill. If the Senate passes the bill, it will be submitted to the House for further review. If ultimately passed, it will become the first comprehensive federal legislation on cryptocurrency assets in the U.S., with the core goal of providing a comprehensive solution for stablecoin regulation. Caroline Pham, acting chief of the U.S. Commodity Futures Trading Commission (CFTC), stated at the Cb annual summit that despite Trump's open attitude toward cryptocurrencies, regulators will not relax compliance requirements for the industry. The CFTC will focus on combating market fraud rather than specific asset classes or technologies themselves, criticizing Biden's regulatory approach of 'over-expanding legal interpretations.' Once cryptocurrency technology is widely adopted, an outright ban will become impractical. The Information reported that the U.S. financial market giant, the Depository Trust & Clearing Corporation (DTCC), is exploring stablecoins, a move that could accelerate the application of digital assets across various markets. DTCC is responsible for clearing U.S. stock trades.

U.S. financial giant Stripe has acquired crypto wallet provider Privy. Previously, Stripe completed an $1.1 billion acquisition of stablecoin infrastructure company Bridge, laying out its strategy for stablecoins and crypto payment infrastructure. Nasdaq-listed Mercurity Fintech Holding Inc. stated that it will establish a long-term BTC reserve through $800 million in financing. Bitcoin Magazine reported that Trump, at the Cb cryptocurrency status summit, stated that he is committed to creating a clear and concise market framework to allow the U.S. to lead the future of cryptocurrency and BTC. Bloomberg reported that among family offices managing assets over $1 billion, two-thirds plan to increase allocations to private equity funds this year, a nearly 70% increase compared to 2024, and plan to include digital assets in their portfolios. LMAX Group strategist Joel Kruger reported that as the dollar weakens and investors' risk appetite increases, it may help boost BTC. Due to trade uncertainties and concerns over Middle East tensions, BTC fell 1.7%, and the dollar index dropped to a three-year low of 97.789. The weakness of the dollar is generally beneficial for cryptocurrencies, and as investors turn back to risk assets, potential rebounds for BTC and ETH will be supported. QCP Capital states that optimism over tariff progress remains suppressed, and geopolitical tensions are again heating up. After U.S. inflation CPI data fell short of expectations, Trump once again pressured the Federal Reserve to implement a comprehensive rate cut, arguing that high debt service costs are unsustainable. QCP Capital believes that despite a slight pullback, the macro environment remains favorable for institutions to further participate in digital assets and allocate capital.

On June 12, U.S. BTC spot ETF inflows reached $86.3 million, and ETH spot ETF inflows reached $112 million. Asset management giant BlackRock stated that its goal is to become the world’s largest cryptocurrency asset management company by 2030. ETF issuer 21Shares strategist Matt Mena stated that the trend of cooling inflation strengthens the possibility of easing by the Federal Reserve later this year, which could lay the foundation for BTC's rise, potentially reaching $200,000 by the end of the year, with expectations to hit $138,500 by late summer. The market focus has turned to how policymakers will respond to cooling inflation and the clarification of the macro situation. The U.S. May PPI month-on-month recorded 0.1%, lower than the expected 0.20%; the May PPI year-on-year recorded 2.6%, matching the expected value of 2.6%. The May core PPI month-on-month recorded 0.1%, lower than the expected 0.30%; the May core PPI year-on-year recorded 3%, lower than the expected 3.1%. For the week ending June 7, the number of initial unemployment claims in the U.S. was 248,000, the highest since the week of October 5, 2024, with an expected 240,000. The number of continuing unemployment claims in the U.S. climbed to the highest level since the end of 2021, providing new evidence of a cooling job market. The market has fully digested the scenario of two rate cuts by the Federal Reserve this year.

Trump stated: 'Powell is a fool, suggesting the Federal Reserve cut rates by 200 basis points. I will not fire Federal Reserve chief Powell; he just needs to lower the rates. The inflation data is performing well, and the U.S. has a large amount of short-term debt. If rates are lowered, it means less interest to pay.' U.S. Treasury Secretary Basant stated that if the debt ceiling issue is not resolved, the country may face the largest crisis since 2008-09. The U.S. is expected to reach the debt ceiling deadline (X-Date) sometime between mid-summer and late summer this year. The new bond king, Gundlach, stated that the U.S. debt burden and interest expenses have become unsustainable, meaning that long-term U.S. bonds are no longer viewed as true risk-free investments, and investors should consider increasing their allocation to non-dollar assets. U.S. Treasury Secretary Basant stated at a Senate appropriations subcommittee hearing that the market size of dollar stablecoins is expected to reach $2 trillion or even higher. The legislation pushed by Congress will require dollar stablecoins to be backed by high liquidity assets such as U.S. Treasuries. Bank of America CEO Brian Moynihan stated that the trading volume of stablecoins is mainly concentrated in trades between cryptocurrencies, and the bank is independently developing stablecoins while willing to collaborate with partners to launch its own stablecoin.

U.S. May inflation CPI and core producer price index PPI were both below expectations, providing data support for the initiation of an easing cycle and igniting market expectations for the Federal Reserve's first rate cut of the year. In the past three rounds of the Federal Reserve's rate cut cycles, BTC recorded increases within 6 to 12 months after the cuts, with a 31% increase after the July 2019 cut, a 1400% increase after the March 2020 cut, and a 113% increase after the short-term cut in September 2024. Attention should also be paid to the stablecoin bill currently under review by both the U.S. House and Senate, which, if passed, could promote a multiple expansion of the stablecoin market. U.S. Treasury Secretary Basant believes the value of stablecoins will reach $2 trillion. Currently, the $250 billion market value of stablecoins supports an overall cryptocurrency market worth approximately $3 trillion and a BTC value of $100,000. Bank of America CEO Brian Moynihan stated that the trading volume of stablecoins is mainly concentrated in trades between cryptocurrencies. The short-term major impact comes from the news of geopolitical conflicts between Israel and Iran, leading to widespread declines in U.S. stock indices and the cryptocurrency market. The Federal Reserve's interest rate meeting is scheduled for next Thursday, with expectations for rates to remain unchanged. The market anticipates that the legislative process for the stablecoin bill may be completed as early as August, with rate cut expectations set for September. The convergence of stablecoin expansion and Federal Reserve rate cuts could lead to a favorable bull market. We hope for a smooth outcome.