Frequent positive news from US-China talks leads to simultaneous rises in cryptocurrency and US stocks
Recently, as US-China talks released positive signals, global financial markets welcomed a wave of enthusiasm. Both the cryptocurrency market and US stocks showed upward trends, demonstrating strong vitality and potential.
Cryptocurrency market shows strong recovery
On the morning of June 10, benefiting from positive news from US-China talks, the secondary cryptocurrency market significantly warmed up. Bitcoin (BTC) performed particularly well. After hitting a new high on May 22, it continued to pull back for two weeks, with a low of $100355, but stabilized and rebounded steadily this week. It has now rebounded past the $110000 mark, just $1400 away from its historical high. As of the time of writing, Bitcoin is quoted at $109632, with an increase of over 10.26% during this period.
Ethereum (ETH) also performed strongly. After a brief consolidation, it continued its good upward trend, rebounding from a low of $2379 to break through to $2726, just $62 away from the new high of this round of increases, with an increase of over 12.2%. In contrast, SOL's performance was somewhat tumultuous, possibly due to cold on-chain market conditions leading to large sell-offs. After hitting a low of $141, it barely rebounded to $161, with an increase of 14.18%, but still has a significant gap from the peak of this round of increases at $187.71.
With the collective rise of altcoins, the total market value of cryptocurrencies has rebounded over 2%, approaching $3.5 trillion. Bitcoin's market share slightly decreased to 62.42%, while the altcoin season index rebounded to 20, and the fear and greed index climbed to a greedy level of 64, indicating a heightened market sentiment.
US stocks show mixed performance, while cryptocurrency stocks shine
In the same period, the US stock market showed a slight upward trend overall. The S&P 500 index rose by 5.52 points, an increase of 0.09%, just 2.3% away from the closing high on February 19. The Dow Jones fell by 1.11 points, a decrease of 0.00%, closing at 42761.76 points, nearly flat. The Nasdaq rose by 61.28 points, an increase of 0.31%, showing relatively stable performance.
Among cryptocurrency stocks in the US and Canada, Circle performed exceptionally well, breaking through $138 during the session, and has risen more than 4.45 times from the issuance price of $31, becoming the market focus. Coinbase rose by 2.13%, with its stock price rebounding to $256.63, demonstrating good development momentum. MicroStrategy rose more than 4.71%, closing at $392.12, on the verge of returning to the $400 mark, showing strong upward momentum.
Liquidation data highlights market volatility
However, market volatility also brings certain risks. According to Coinglass, over 106,600 people were liquidated in the last 24 hours, with a total liquidation amount of $436 million. Among them, short liquidations amounted to $381 million, while long liquidations totaled $54.626 million, with shorts being the main cause of liquidation. The largest single liquidation on a CEX was for ETH-USDT, occurring on Huobi, valued at $4.0596 million, which also reminds investors of the market's uncertainty and risk.
US-China talks recognized by the Trump administration
The recent recovery of the market is largely attributed to the positive results of the first meeting of the US-China economic and trade consultation mechanism. On June 9, the meeting was held in London, UK, discussing issues related to China's rare earth imports and exports and the US's broad technology product imports and exports. Chinese Vice Premier He Lifeng, US Treasury Secretary Bessent, and US Secretary of Commerce Lutnick attended. Lutnick was absent from the Geneva talks in May, where he took a strict stance on China's technology export controls.
On June 10, the Trump administration expressed satisfaction with the discussions. Bessent described the meeting as 'good,' while Lutnick considered it 'productive.' Trump stated, 'We are making good progress with China, receiving positive news from London. We will consider lifting export controls, and the US-China negotiations are still ongoing.' This statement drove US chip stocks to lead the gains, with Nvidia rising more than 2.2%, further stimulating the rise of global risk assets.
Macroeconomic data boosts market confidence
Macroeconomic data also injected a dose of strong confidence into the market. In May, American consumers' expectations for future inflation declined across the board, marking the first decrease since 2024, with the largest drop in short-term inflation expectations. A survey released by the New York Fed showed that the one-year inflation expectation fell from 3.6% in April to 3.2%, the three-year inflation expectation decreased from 3.2% to 3%, and the five-year inflation expectation dropped from 2.7% to 2.6%. Although inflation expectations remain above the Federal Reserve's target of 2%, they have clearly retreated, indicating improved consumer confidence. Kevin Hassett, director of the White House National Economic Council, stated that the current decline in inflation is the largest in the past four years. April inflation data showed that the Fed's preferred inflation measure—the Personal Consumption Expenditures Price Index (PCE)—was at 2.1% in April, the lowest level since February 2021. However, Nick Timiraos, often referred to as the Fed's mouthpiece, also warned that uncertainty regarding US medium-term inflation expectations remains high, and the market may be interpreting short-term data with “excessive optimism.”
Bitcoin favored by listed companies and institutions
In the cryptocurrency market, Bitcoin's medium- and long-term fundamentals remain unchanged. More and more listed companies are joining the ranks of strategically reserving Bitcoin. On June 9, US-listed company KULR planned to raise up to $300 million for general corporate purposes, including purchasing more Bitcoin, currently holding 800 Bitcoins. On the same day, crypto mining company BitMine Immersion Technologies purchased 100 Bitcoins, initiating a Bitcoin reserve strategy, and stated that it would continue to increase its holdings in the future. UK-listed company Anemoi International also invested about 30% of its cash reserves in Bitcoin. The continued influx of institutional funds is also an important driver of Bitcoin's rise, with BlackRock's IBIT holding size exceeding $70 billion, becoming the fastest ETF to reach this milestone. Analysts noted that the gap between Bitcoin's 50-day exponential moving average (EMA) and the 200-day EMA is widening, signaling an increase in bullish momentum in the market. The medium-term bullish outlook for Bitcoin is clear, and it is difficult to break below the key support level of $100,000.
Although the current market is showing an upward trend due to favorable US-China talks and macroeconomic data, there are still uncertainties regarding whether this dialogue will achieve the expected results, given the strategic development considerations of both countries. Any rise based on policy compromise needs to be cautious of the risk of agreement breakdown. The impact of July's tariff data is also pending further exploration by the market. While investors are looking for market opportunities, they must remain cautious, closely monitor market dynamics, and plan investment strategies rationally.
