On Tuesday and Wednesday, Powell faced off against Congress, while Trump expressed hope that Congress would firmly address Powell and argued that interest rates should be 'at least two to three percentage points lower.' Previously, Powell had repeatedly ignored Trump's ongoing calls to lower interest rates. Federal Reserve head Powell stated that current interest rates are relatively high, with greater room for cuts compared to when rates were near zero, suggesting that everyone should wait for more signs; if inflation is not expected to rise or if the labor market is weak, there is no need to wait for further observations; the final tariff levels will determine their impact.
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The U.S. Senate Banking Committee released 'Legislative Principles for Crypto Market Structure' to provide clear guidance for digital asset regulation. The U.S. Senate Banking Committee published a set of principles to formulate comprehensive market structure legislation, which will guide Chairman Tim Scott and his colleagues in discussions and negotiations with industry participants, legal and academic experts, and government stakeholders on the bill text, to advance market structure legislation in the Senate building on the successful foundation of the stablecoin bill (GENIUS Act). The Hong Kong government published an announcement in the Gazette on June 6, stating that the (Stablecoin Regulation) will officially take effect on August 1. Hong Kong Monetary Authority Chief Executive Yu Weiwen stated that given that stablecoins are relatively new products, the risks involved in issuing businesses, user protections, and market capacity and long-term development, the licensing has a relatively high threshold, and initially, only a small number of licenses will be granted; applicants must present specific feasible business plans and practical application scenarios, focusing on their reserve management capabilities, compliance systems, and technical security. The first batch of stablecoins will focus on cross-border trade and Web 3.0 applications. New York City Mayor Eric Adams announced a cryptocurrency plan, intending to establish a city council task force to promote cryptocurrency-related policies while using cryptocurrencies to pay for municipal service fees and introducing digital asset education.
Sentinel Global's first fund completed fundraising of $213.5 million, intending to invest in blockchain and other fields. UK-listed company TAO Alpha plans to raise £100 million to support its BTC financial strategy. Anthony Pompliano's ProCap BTC increased its holdings by 3,724 BTC at an average price of $103,785. South Korea's (Economic Review) reported that South Korea's eight major commercial banks are collaborating to establish a joint venture company based on the Korean won stablecoin, aiming to counter the dollar-dominated global stablecoin market and actively compete for dominance in the digital asset space. It is expected that after completing the relevant legal framework, the feasibility of establishing a joint venture company will be realized as early as the end of this year to early next year. Matrixport stated that global monetary supply indicators have recently become a focal point for the market; this indicator had previously captured the signal of BTC's slight correction last week, and the coming week will be a key point for validating the effectiveness of this signal. Like most tools, it has certain reference value. Last week, Matrixport analysts predicted that BTC could rise to $140,000 by the end of this summer. QCP stated that BTC's return above $100,000 indicates that the weekend's correction was more driven by macro factors, and investors currently do not view this as a systemic risk diffusion event, interpreting the current situation more as a regional geopolitical conflict rather than a global crisis.
On June 24, U.S. BTC spot ETF inflows totaled $588.6 million, while ETH spot ETF inflows amounted to $71.3 million. On the 23rd, U.S. BTC spot ETF inflows were $350.6 million, and ETH spot ETF inflows reached $100.7 million. After Texas Governor Greg Abbott signed Senate Bill 21, Texas became the first state in the U.S. to establish an independent BTC reserve supported by public funds, with the state government allocating $10 million to purchase BTC to bolster the reserve. Trump called on the House of Representatives to swiftly pass the recently approved Senate stablecoin regulation bill, but lawmakers pushing the bill stated that some details still need to be coordinated. U.S. Senator Hagerty mentioned that Trump is ready to sign the (GENIUS Stablecoin Act), and said the bill may soon reach his desk, which is seen as a significant milestone in stablecoin regulatory legislation and could have far-reaching impacts on the industry. Trump continues to call for interest rate cuts: 'Mr. Too Late' Fed head Jerome Powell will explain to Congress why he refuses to lower interest rates; Europe has cut rates 10 times while we have done so zero times, we should at least cut by 2 to 3 percentage points. This would save the U.S. $800 billion annually.
Fed head Powell stated that current interest rates are relatively high, with greater room for cuts compared to when rates were near zero, suggesting that everyone should wait for more signs; if inflation is not expected to rise or if the labor market is weak, there is no need to wait for further observations; the final tariff levels will determine their impact. Powell stated in Congress that the Federal Reserve has no legal right to purchase BTC and does not seek that power; legislation related to stablecoins is progressing, which is good; banks can provide banking services to the cryptocurrency industry and engage in related businesses, provided that the safety and soundness of the financial system are ensured. On Tuesday and Wednesday, Powell faced off against Congress, while Trump expressed hope that Congress would firmly address Powell and argued that interest rates should be 'at least two to three percentage points lower.' Previously, Powell had repeatedly ignored Trump's ongoing calls to lower interest rates. Morgan Stanley anticipates that the Fed will cut rates 7 times in 2026, with final rates dropping to between 2.5% and 2.75%. Morgan Stanley strategist Wilson noted that while geopolitical conflicts dominate the headlines, sell-offs triggered by such events tend to be short-lived. Two Federal Reserve governors, Waller and Bowman, indicated that tariffs' impact on prices may be temporary and that they might support a rate cut in July, both being mentioned as potential candidates to replace Powell next year.
Recent headlines include 'Israel-Hamas Ceasefire,' with Trump stating, 'The ceasefire agreement is now in effect.' Israel-Hamas ceasefire + Fed shifts to dovish stance, Fed members are releasing dovish signals, suggesting that if tariffs do not raise inflation, a rate cut may happen in July. Another short-term bearish factor on July 9 is that Trump's 90-day tariff buffer period may expire, at which time the tariff outlook may become clearer; the Fed has repeatedly emphasized that 'the final tariff levels will determine interest rates.' After multiple recent bearish factors, there is hope that this could become a turning point for the market; following the bearish sentiment, BTC performs strongly, touching $108,000. If the Israel-Hamas conflict ceases, Trump’s tariffs are implemented, and the Fed shifts to a rate cut by the end of July, or if Powell does not deny a rate cut in September, the market can escape the current bearish trades and enter a rate-cut trading phase, with about 200 basis points of room for cuts to reach the long-term neutral rate near 2.5% (Trump is calling for cuts of 200-300 basis points), which is about double the rate cut from the end of last year. Traditionally, a bullish market in anticipation of rate cuts can still be expected; I hope everything goes smoothly. Powell stated in Congress on Tuesday, 'Wait a bit longer.'