On Wednesday evening, US stock indices opened, with the Nasdaq index rising 0.6% during the session, the S&P 500 index increasing by 0.26%, gold up by 0.3%, and Nvidia rising 2.33% during the session, becoming the first company with a market value of $4 trillion. Trump will impose a 25% tariff on Japan and South Korea. Trump stated that Powell has been complaining like a baby about non-existent inflation for months, refusing to do the right thing, and now it is time to cut interest rates!
Cointelegraph reports that several crypto companies are urging US House members to quickly pass the (Digital Asset Market Clarity Act) (CLARITY Act) during next week's meeting to clarify the regulatory framework for the crypto industry. The CLARITY Act clarifies the division of responsibilities between the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in cryptocurrency regulation. The act grants most regulatory authority over the crypto market to the CFTC, while crypto products related to securities are regulated by the SEC. Cryptoinamerica reported that the US Senate Banking Committee will hold a hearing this Wednesday to establish a $3 trillion regulatory framework for the digital asset industry and is expected to release a discussion draft for market structure reform later this week. The US Department of Justice announced that the international fraud project OmegaPro has been prosecuted for carrying out a global fraud scheme amounting to $650 million. Cryptoslate reported that the four major USD stablecoin issuers collectively hold approximately $182.4 billion in US Treasury bonds, ranking 17th among holders, surpassing South Korea and the UAE, and trailing only Norway. The South Korean Ministry of SMEs and Startups announced plans to amend the current (Special Act on Promoting Risk Enterprises) to allow virtual asset service providers to register as 'risk enterprises,' thus qualifying them for relevant government support policies.
US-listed company Sequans announced that it has completed a $384 million financing to launch a BTC treasury plan. Analyst Eugene stated that $110,000 remains the final resistance level for bulls, and a breakout direction is expected this week. If it breaks downward, it will quickly decline to $100,000; if it breaks upward, it will reach a new high of $120,000 before entering consolidation, predicting an exciting week. The Block reported that as the US Securities and Exchange Commission considers accelerating the approval of a unified listing framework, the floodgates for altcoin crypto ETFs are about to open. The SEC is collaborating with various platforms to establish common listing standards for cryptocurrency ETFs, saving paperwork and time for repeated consultations. Bloomberg ETF analyst James Seyffart expects the framework draft to be released this month, with implementation in September or October, at which point the floodgates for other asset ETFs will open. QCP Capital stated that if the $110,000 resistance level is decisively broken, it could trigger a new round of volatility, and the market seems to be positioning for this, as they are continuously increasing their holdings of September-expiring $130,000 call options, highlighting the market's structural bullish expectations for the third quarter.
CryptoQuant analyst Axel Adler Jr stated that a typical BTC Bollinger Band squeeze is currently observed, with the range between the upper and lower boundaries reducing to 7.7%, one of the lowest values in the entire bull market cycle, and the likelihood of an upward breakout in an upward trend environment is significantly higher. On July 8, $80.08 million flowed into the US BTC spot ETF, and $46.6308 million flowed into the ETH spot ETF. The US REX-Osprey SOL spot ETF saw inflows of $21 million, accumulating $41.2 million over its first four trading days. Bloomberg ETF analyst Eric Balchunas indicated that BlackRock currently holds nearly 700,000 BTC, and its BTC spot ETF IBIT is absorbing BTC at a rate of 40,000 BTC per month. At this trend, it is expected to reach a holding of 1.2 million BTC by May 2026, an impressive performance for a product that is just under two years old. Cryptoinamerica reported that the Trump administration's digital asset working group is accelerating preparations to submit its first significant cryptocurrency policy report by July 22. This report is the result of several months of collaboration between working group leader David Sacks, Bo Hines, and the Department of Treasury, Department of Commerce, SEC, and CFTC, aimed at implementing Trump's executive order signed in January to strengthen the US's dominance in the cryptocurrency field. The report is expected to include regulatory and legislative recommendations, though the specific content remains unclear.
Trump has sent trade letters to Japan and South Korea, indicating that a 25% tariff will begin on August 1. Trump stated that he may send a letter to the EU within two days, disclosing the tariff rates applicable to EU goods exported to the US, noting that the EU has been 'very friendly' in recent trade negotiations. Trump criticized Powell for complaining like a baby about non-existent inflation for months, refusing to do the right thing, stating that the tariff policy has zero impact on inflation, and now it is time to cut interest rates! Trump suggested that a person willing to lower rates should be appointed, and Congress should investigate Federal Reserve Chair Powell. If the accusations regarding Powell misleading Congress on the Federal Reserve headquarters renovation project are true, Powell should resign immediately. Trump reiterated his criticism of Powell, calling him 'terrible,' and that deceiving Congress would constitute grounds for immediate dismissal. Trump continues to criticize Powell for maintaining unchanged interest rates. The Wall Street Journal reports that National Economic Council Director Hassett is a strong contender to be the next Federal Reserve chair, having met with Trump in June. A popular candidate for the next Federal Reserve chair, Waller, stated, 'The Federal Reserve's decision to maintain interest rates has frustrated Trump, and I sympathize with that; rates should be cut to lower levels.'
The New York Federal Reserve and the San Francisco Federal Reserve jointly released a report indicating that due to the recent increase in uncertainty, the possibility of returning to near-zero interest rates in the medium to long term remains significant. The minutes from the Federal Reserve meeting will be released on Thursday at 2:00 AM, and the market is closely watching for signs in the minutes indicating the end of the Federal Reserve's wait-and-see phase, as the minutes may further suggest that the committee expects to obtain the necessary data for making a rate cut decision before the end of summer. If the situation aligns with expectations, this will strengthen market expectations for a rate cut in September. Goldman Sachs expects the Federal Reserve to cut rates in September, three months earlier than previously predicted, as tariff-related inflation is milder than expected, while anti-inflationary forces, including slowing wage growth and weakening demand, are emerging. Goldman Sachs anticipates rate cuts of 25 basis points in September, October, and December, lowering the terminal rate expectation from 3.5%-3.75% to 3%-3.25%.
On Wednesday evening, US stock indices opened, with the Nasdaq index rising 0.6% during the session, the S&P 500 index increasing by 0.26%, gold up by 0.3%, and Nvidia rising 2.33% during the session, becoming the first company with a market value of $4 trillion. BTC increased by 0.6%, and ETH rose by 3.3%. The impact of tariffs is now settling in, and Trump has stated that he will impose a 25% tariff on Japan and South Korea. On Wednesday, the South Korean Seoul Composite Index rose by 0.6%, the Nikkei 225 index increased by 0.3%, and the Europe Stoxx 50 index rose by 1.3%. The long-standing negative sentiment from tariffs is gradually dissipating, and the market seems to have preemptively digested some of the unfavorable news, leading to a rebound in related stock indices, with cryptocurrencies following suit. Moving forward, Trump's focus on Powell may increase, as he aims to prevent economic weakness in the US caused by tariffs and is pressing the Federal Reserve to cut interest rates. The market theme is transitioning from tariff-related negativity to Federal Reserve interest rate cuts, which may begin in September and last until June of next year. After a long pause in the market, a breakthrough above previous highs is hoped for, leading to a new narrative of rate cuts and a new phase bull market.