On Wednesday, U.S. stock indices opened, with the Nasdaq down 1% during trading, the S&P 500 down 1.2%, and the Dow Jones down 1.7%. The yield on 30-year U.S. Treasury bonds rose to 5.06%, and the dollar index fell below 100 to 99.4, a decline of 0.6%. Gold rose 0.6% to $3310/ounce. Dalio believes that to respond to U.S. Treasury depreciation, the Federal Reserve may use money printing to pay off debt.
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Paul S. Atkins, head of the U.S. Securities and Exchange Commission (SEC), stated at a House hearing that he would prioritize promoting SEC's regulatory transparency and accountability mechanisms, especially in the digital asset space. He emphasized that the SEC should conduct a strict cost-benefit analysis when formulating rules to avoid adversely impacting market innovation due to excessive regulation. The SEC will strengthen cooperation with Congress to establish a reasonable regulatory framework for the crypto asset market, ensuring that its regulatory activities align with legislative intent and taking a prudent approach to digital asset regulation to avoid hindering technological progress. The Texas strategic BTC reserve bill SB 21 passed its second reading in the House. The process after the second reading is: third reading vote (final passage by the House) → sent to the Senate (third reading process repeats) → if there are inconsistencies between the two versions, mediation and amendment will occur → finally sent to the governor for signing and enactment. The U.S. Senate voted to advance the 'motion to terminate debate' on the (GENIUS Act) for formal consideration. The bill will now enter a comprehensive review process and move into the debate and amendment phase in the Senate. David Sacks, the White House's cryptocurrency and AI director, commented that the (GENIUS stablecoin bill) passing through the Senate procedural motion represents a significant advancement in creating a legal framework for stablecoins, and the bill will now enter the Senate's full voting stage.
Bitcoin Magazine reported that the asset management company Strive, founded by Vivek Ramaswamy, plans to purchase approximately 75,000 BTC from MtGox at a discount. The new acting inspector general of the U.S. Securities and Exchange Commission (SEC), Katherine Reilly, has listed cryptocurrency fraud as a regulatory priority. The SEC has delayed the decision deadline for the proposals of XRP and DOGE ETFs and postponed the decision on Bitwise ETH ETF's proposal to allow staking. Bloomberg ETF analyst James Seyffart pointed out that approval may come as early as the end of June or early July, but is more likely to occur in early Q4. K33 analysts stated that the development of U.S. crypto policy remains a key catalyst, with potential developments in strategic BTC reserves to watch for in the coming days. Although several executive order deadlines have passed without public announcements of progress, Trump's Meme event on May 22 and Vice President JD Vance's keynote speech at the BTC2025 conference on May 28 may provide new information. CryptoQuant analyst Avocado stated that BTC's rebound without overheating signs is a clear signal of a healthy bull market, indicating that market sentiment remains favorable for further rises.
On May 20, the U.S. BTC spot ETF saw inflows of $329.2 million, marking five consecutive days of net inflows. The ETH spot ETF saw inflows of $64.8 million, marking three consecutive days of net inflows. The cumulative net inflow of the U.S. BTC spot ETF reached $42.746 billion, setting a new historical high. Santiment reported that the total net inflow of BTC ETFs over the past five weeks has reached $6.63 billion, and historical data shows that this is usually a bullish signal for future price increases. On May 21, Tether issued $2 billion in stablecoins. 21Shares strategist Matt Mena stated that BTC is on the verge of a breakout, influenced by multiple structural forces, including institutional capital inflows, historic supply tightening, and improvement in the macroeconomic environment. These factors suggest that BTC will follow a more sustainable and mature path to reach new historical highs, predicting that the combined effects of these factors could push BTC to $138,500 this year. SEC filing documents show that BlackRock, with an asset management scale exceeding $1 trillion, has purchased $1.08 million of BlackRock's spot BTC ETF, marking BlackRock's first public disclosure of investment in cryptocurrency-related assets. Geoff Kendrick of Standard Chartered Bank stated that the recent SEC 13F report supports the expectation that BTC could rise to $500,000 by the end of 2028, with U.S. institutions increasing their holdings in Strategy (formerly MicroStrategy), which is seen as an alternative investment tool for BTC. This may reflect institutions' efforts to gain BTC exposure under regulatory constraints.
JPMorgan CEO Jamie Dimon stated: JPMorgan will allow customers to purchase BTC, but we will not hold it; it will only be reflected in the customer's account statement, and blockchain is not as important as you think. Previously, JPMorgan CEO Dimon said: I personally would never buy BTC. The U.S. Senate voted to advance the 'motion to terminate debate' on the (GENIUS Act) for formal consideration. The bill will now enter a comprehensive review process and move into the debate and amendment phase in the Senate. David Sacks, the White House's cryptocurrency and AI director, commented that the (GENIUS stablecoin bill) passing through the Senate procedural motion represents a significant advancement in creating a legal framework for stablecoins, and the bill will now enter the Senate's full voting stage. Morgan Stanley stated that the U.S. has reduced the likelihood of recession; the corporate earnings season seems to have ended. Even if trade data weakens further in the coming months, recent corporate profit revisions suggest that the stock market will continue to rise. Ray Dalio, founder of Bridgewater Associates, stated: Moody's downgrade of U.S. credit ratings still does not reflect the real risks. The U.S. may respond to high debt levels through 'printing money to pay off debt,' which will transfer costs in the form of currency depreciation, prompting the market to reassess U.S. Treasury risks.
On Wednesday, U.S. stock indices opened, with the Nasdaq down 1% during trading, the S&P 500 down 1.2%, and the Dow Jones down 1.7%. The yield on 30-year U.S. Treasury bonds rose to 5.06%, and the yield on 10-year U.S. Treasury bonds rose to 4.58% (in layman's terms, high U.S. Treasury yields mean that U.S. Treasury bonds are worthless/depreciating). The dollar index fell below 100 to 99.4, a decline of 0.6%. Gold rose 0.6% to $3310/ounce; BTC broke through its historical high of $109,800, rising by 2.5%. Due to the decline in U.S. stock indices during trading, BTC's rise has slowed. In response to U.S. Treasury depreciation, Dalio believes the Federal Reserve may use money printing to pay off debt. The depreciation of U.S. Treasuries and the dollar has been a widely discussed topic this year, with safe-haven sentiment continuously driving up gold prices. BTC has often benefited (as a so-called risk asset priced in dollars), such as breaking through its historical high on Wednesday. If the Federal Reserve begins to cut interest rates or engage in quantitative easing to absorb U.S. Treasuries, this summer's market may see further expectations. As the atmosphere builds, we hope for a smooth summer.
