2025.5.31 Daily News Happy Dragon Boat Festival!
Trump is stirring up trouble again, accusing China of violating the Geneva trade agreement.
Announced that it will increase tariffs on imported steel from 25% to 50% starting next week to protect the country's steel industry from unfair foreign competition.
The United States has also expanded sanctions on Chinese technology companies, adding a number of companies and subsidiaries involved in artificial intelligence, supercomputing, quantum technology and military industry, which has once again put the Sino-US trade negotiations into crisis.
After the news was announced, risk aversion emerged in the market, and U.S. stocks and Bitcoin fell accordingly, with Bitcoin falling to a low of $103,102.
However, the PCE data released yesterday was not bad, which is good for the risk market.
The core PCE was fine-tuned from 2.6% to 2.7%, pushing up market expectations for a rate cut in the second half of 2025, and the probability of a rate cut in September rose from 53.2% to 54.3%.
This has eased the market's concerns about inflation a little, especially in the first month of Trump's tariff increase, when inflationary pressure did not seem to be that great. However, the impact of tariffs on inflation in the future remains to be seen.
Judging from the data, the Bitcoin spot ETF recently had a net outflow of US$359 million, breaking the 10-day consecutive day trend of net inflows.
In contrast, the Ethereum spot ETF had a net inflow of US$91.93 million, indicating that American investors are currently more optimistic about Ethereum.
The short-term support level of Bitcoin is at $103,300, and the support level of $93,000 to $98,000 is still very stable. 2.3 million Bitcoins are hoarded at this position.
Judging from the stablecoin data, the on-site funds increased by 200 million, and the total market value reached 249.8 billion.
The market value of USDT is 153.083 billion, with an increase of 63 million and a slight increase in trading volume, indicating that the capital inflow into the Asian and European markets has slowed down but remains active.
The market value of USDC has declined, but the trading volume has increased. It is suspected that American investors are changing hands and leaving the market. This trend has continued for two days.
Overall, the positive news in the market has been basically suppressed by the tariff issue. Everyone is still digesting this impact. We can focus on the trend of the U.S. stock market after it opens next week.