On Friday, Trump spoke again, suggesting a direct 50% tariff on the EU starting June 1, and the European Commission stated it would not comment on the new U.S. tariff developments. The Nasdaq fell by 1% during trading, the S&P 500 index dropped by 0.7%, and the dollar index fell to 99.2 points, a decrease of 0.7%; gold surged to $3,360 per ounce, an increase of 2%.
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The U.S. Senate voted to pass the "motion to terminate debate" to formally review the (GENIUS Stablecoin Bill), which will now enter a comprehensive review process. David Sacks, the White House's cryptocurrency and AI director, stated that the stablecoin bill will unlock trillions of dollars for the U.S. Treasury. Texas has passed the strategic BTC reserve bill SB 21, which has now been submitted to the governor's office for signing. Texas Governor Greg Abbott published an article titled "Texas Promotes the Establishment of Strategic BTC Reserves: A New Era for State Finance," praising the strategic BTC reserves (SBR). French Hill, the head of the U.S. House Financial Services Committee, has scheduled the review date for the House cryptocurrency market structure bill for June 10. Bloomberg ETF analyst James Seyffart indicated that the SEC has delayed its decision on the XRP and LTC spot ETFs and postponed the resolution on Fidelity's physical BTC redemption, as well as the decision on 21Shares' staking plan for the spot ETH ETF. Coinmarketcap data shows that the altcoin season index is currently at 27, having previously dropped to 22 on May 17. This index indicates that, over the past 90 days, approximately 27 of the top 100 cryptocurrencies by market capitalization have outperformed BTC, and it is used to determine whether the current cryptocurrency market is in an altcoin-dominated season.
(The Guardian) reported that as of May 21, among the 220 attendees of the TRUMP dinner, about 43% suffered net losses totaling $8.95 million. Trump delivered a speech at the dinner, but the content did not contain any news, still mentioning topics he frequently brings up in cryptocurrency discussions, such as the 'World Cryptocurrency Capital.' Strategy (formerly MicroStrategy) announced it would issue up to $2.1 billion of 10% Series A perpetual preferred stock. QCP stated that BTC has entered a price exploration phase, contrasting sharply with gold; BTC currently has tight liquidity and low open interest, with this round of increases having a more structured basis than the previous one, less speculative sentiment, stronger fundamental support, and a broader market background leaning towards bullishness, partly due to a loosening regulatory environment in the U.S.; on the other hand, the continuous influx of institutional capital through ETFs and direct spot allocations is forming structural demand. Meanwhile, the $2.1 billion raised by Strategy will be used to further purchase BTC, potentially providing additional momentum for prices. eToro analyst Reece Hobson stated that BTC's new highs are due to multiple factors, including institutional capital inflows and the U.S. spot BTC ETF injecting billions into the market, with macro conditions also playing a role, such as increased liquidity and a weakening dollar; the altcoin season will require the Fed's quantitative easing to inject more liquidity into the system, and BTC's dominance needs to reach around 70% (currently at 64%).
On May 22, U.S. BTC spot ETFs saw an inflow of $934.8 million, continuing a net inflow for seven days. ETH spot ETFs saw inflows of $110.5 million, with five consecutive days of inflow. Arthur Hayes indicated that BTC may reach the $150,000 to $200,000 range by the end of summer, after experiencing a deep correction, and may touch $250,000 by the end of 2026; if ETH can stand above $5,000 by the end of the year, that would be considered a target achieved, which would restore market confidence, and the eventual bull market cycle could reach $10,000 to $20,000; the altcoin season is bound to arrive as new narratives will always emerge in the market. (The Wall Street Journal) reported that major commercial banks such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are discussing a joint issuance of stablecoins to cope with the increasing competition in the cryptocurrency industry, with negotiators including Zelle payment system operator Early Warning Services and the real-time payment network Clearing House. The U.S. Senate is advancing landmark stablecoin legislation (the GENIUS Act), and Bitwise CIO Matt Hougan stated that this move could pave the way for a sustained multi-year bull market, likening this progress to a "marriage between Wall Street and the cryptocurrency industry," which appears set to welcome the first fully passed cryptocurrency legislation in the U.S. this summer. JPMorgan remains skeptical about the total supply of stablecoins potentially reaching trillions of dollars, stating that although the U.S. stablecoin regulatory framework is gradually advancing, the market's predictions of the total supply of stablecoins tripling or quadrupling in the next one to two years from the current approximately $240 billion to close to a trillion dollars are overly optimistic.
On Friday, Trump spoke again, stating that the EU has caused the U.S. trade deficit to exceed $2.5 billion annually and suggested imposing a direct 50% tariff on the EU starting June 1, 2025, while threatening a 25% tariff on Apple. The European Commission stated it would not comment on the new U.S. trade tariffs, and later that day, both parties would have a call to discuss trade issues. Gold surged to $3,360 per ounce, an increase of 2%; the Nasdaq fell by 1% during trading, the S&P 500 index dropped by 0.7%, and the dollar index fell to 99.2 points, a decrease of 0.7%; BTC fell by 2.2%, and ETH fell by 3.5%. Standard Chartered Bank noted that concerns about the U.S. fiscal deficit are intensifying, and the Federal Reserve is expected to implement interest rate cuts to cushion the impact on the bond market and support economic growth, remaining optimistic about U.S. stocks while reaffirming gold's value as a hedge against inflation and recession risks, maintaining a target price of $3,500. During a time of both momentum and pressure, analysts predict the Fed will need loose liquidity to support economic growth and alleviate concerns about U.S. debt and deficits; BTC has surged to over $110,000, with other cryptocurrencies following suit; Trump has repeatedly spoken, adding pressure to the market. UBS raised its year-end target for the S&P 500 index from 5,800 to 6,000 points and set a target of 6,400 points for June 2026. Next Friday, the Fed's favored inflation indicator, the PCE price index, is expected to drop to 2.5%, down from the previous value of 2.6%, and next week's data may increase the likelihood of interest rate cuts. Attention is on the Fed's monetary policy; if it further leans dovish and the dollar weakens, it could continue to promote liquidity injection into the cryptocurrency market. The atmosphere is gradually rising, hoping for a smooth summer.