Bitcoin hovers around $109,000 while the S&P 500 rises 0.17%, with trading volume down 12.35% to $50.47 billion.
On Wednesday morning, Bitcoin continued to fluctuate around the $110,000 mark despite positive economic data that had propelled the stock market sharply upward. Bitcoin then fell below $109,000 in the afternoon, showing a clear divergence from traditional risk assets.
The Trump administration may view this as a significant step as it successfully negotiates a trade deal with China following a series of tense meetings in London. Domestically, the U.S. Bureau of Labor Statistics (BLS) released inflation data for May that was lower than expected, while stock indices rose sharply thanks to this positive information.
The Consumer Price Index (CPI) for May rose 0.1%, pushing the annual inflation rate to 2.4%. Previously, economists at FactSet had predicted the CPI would rise 0.2% and inflation would reach 2.5%. According to data from CNBC, the S&P 500 rose 0.17%, Nasdaq rose 0.10%, and Dow Jones rose 0.49%.
CPI data for May 2025 / U.S. Bureau of Labor Statistics
This development contradicts concerns from some experts who had warned of the risk of a sharp rise in inflation due to Trump's tariff policies. However, while Trump praised the CPI data and expressed confidence in the new trade deal – which includes a 55% import tax on Chinese goods and a 10% tax on American goods to China – Bitcoin's price barely reacted.
Trading volume has significantly decreased
"The deal with China is done, just waiting for me and President Xi to approve it," Trump wrote on Truth Social in capital letters. "CPI just announced – very good numbers! The Fed should cut interest rates by 1 percentage point," he urged Fed Chair Jerome Powell, as the Fed is set to meet next week to decide on interest rate policy.
Bitcoin is trading at $108,673 at the time of reporting, holding steady in the early morning before a slight decrease in the afternoon. BTC price is down 0.17% compared to yesterday, but has increased 3.36% over the past week. According to CoinMarketCap, BTC has moved within a range of $108,558.63 – $110,384.22 in the past 24 hours.
BTC Price / Tradingview
Market capitalization reached $2.16 trillion, up slightly 0.36% from the previous day. However, trading volume has significantly decreased to $50.47 billion, equivalent to a 12.35% drop, indicating that some investors are sitting on the sidelines. Bitcoin's dominance ratio slightly decreased to 63.87% (down 0.33%), suggesting that capital may be shifting to altcoins.
BTC Dominance
Meanwhile, sentiment in the derivatives market remains slightly bullish, with open interest rising 0.65% to $75.52 billion according to data from Coinglass. However, some bulls may have been overly optimistic as total liquidations in the past 24 hours reached $3.19 million, with $3.15 million coming from long positions. Short position liquidations were only $45,170, reflecting an imbalance in market expectations.
