U.S. Markets Hold Steady While Bitcoin Reclaims $110K

Futures markets reflected a mild bearish tilt, largely driven by caution ahead of several upcoming Fed speeches, Q1 GDP revisions, and weekly jobless claims reports.

In stark contrast, Bitcoin once again demonstrated resilience. The flagship cryptocurrency rebounded to $109,000, helping lift total crypto market capitalization to $3.566 trillion. Altcoins followed suit with slight gains across major caps. Sentiment remains bullish despite lingering global economic uncertainty. The rally appears to be supported by an influx of liquidity into spot Bitcoin and Ethereum ETFs in the U.S., which saw $934.8 million and $110.5 million in net inflows, respectively—marking the strongest session of the week for both asset classes.

Notably, Bitcoin’s price continues to display a strong positive correlation with global M2 money supply growth, reinforcing its narrative as a hedge against fiat debasement.

Trump Delays EU Tariffs Amid Aggressive Negotiations

President Trump’s tariff blitz earlier this month put global trade partners on edge, prompting rapid diplomatic responses. On Thursday, Trump agreed to delay a 50% tariff on European Union imports until July 9 following a direct call with European Commission President Ursula von der Leyen. The EU promised to present a trade proposal that satisfies U.S. interests, with von der Leyen emphasizing the bloc’s commitment to swift and decisive negotiation.

In Japan, Prime Minister Shigeru Ishiba also escalated trade dialogue with Washington ahead of the upcoming G7 Summit. Japan’s chief negotiator Ryosei Akazawa met with U.S. officials in D.C. last Friday for the third round of bilateral talks, focusing on tariff reform, non-tariff barriers, and Arctic shipping collaborations. Ishiba also expressed his desire to meet Trump in person at the G7 to finalize a comprehensive agreement.

The U.S. appears to be using tariff threats not just for economic leverage but as a geopolitical tool—linking trade policy with defense cooperation and industrial partnerships.

U.S. Debt, Stablecoins, and Economic Growth

Treasury Secretary Scott Bessent has reiterated that public debt is manageable as long as economic growth outpaces debt accumulation. Echoing former Treasury Secretary Janet Yellen, Bessent dismissed concerns about raw debt figures and instead pointed to the debt-to-GDP ratio as the more meaningful metric.

This reflects a broader willingness from the Trump administration to accept higher debt levels if they finance growth-enhancing investments. However, such a stance also implicitly endorses continued monetary expansion—which could dilute the U.S. dollar’s purchasing power and increase demand for scarce, inflation-resistant assets like Bitcoin.

Stablecoins Emerge as Treasury Priority

One of the most significant signals from Washington this week was Bessent’s endorsement of stablecoins. Speaking in a CNBC interview, he described stablecoins as a key strategic focus for the Trump administration due to their potential to generate up to $2 trillion in demand for U.S. Treasury instruments. With current stablecoin demand hovering around $300 billion, this represents a transformational opportunity for public debt financing.

The administration plans to implement strict AML standards while creating a friendly regulatory framework to retain fintech innovation on U.S. soil. This marks a distinct departure from the previous administration’s more adversarial approach, which had pushed many blockchain companies offshore.

Bitcoin Derivatives and Altcoin Season

On May 30 at 08:00 UTC, Deribit will see the expiry of Bitcoin options contracts worth $13.8 billion. The current price trajectory favors call buyers, indicating market consensus for higher BTC valuations. With Bitcoin now hovering near all-time highs, many traders are eyeing the next psychological milestone: $110,000.

Retail sentiment is increasingly shifting toward a long-awaited altcoin season. According to a recent Twitter poll with over 2,700 responses, a majority of crypto investors are holding altcoins in anticipation of a breakout. However, veteran traders know that sustained altcoin rallies often follow a consolidation phase in Bitcoin, not coincide with it. Only once BTC establishes a stable price plateau does liquidity typically rotate into smaller-cap assets.

Regulatory Progress and Institutional Endorsements

Momentum for crypto regulation continues to build in Washington. The GENIUS Act, which aims to establish a federal framework for stablecoins, is moving through Congress with bipartisan backing. Treasury officials and crypto-friendly senators have voiced optimism that the bill could unlock major institutional inflows while supporting dollar dominance in the digital age.

Meanwhile, Bitcoin adoption continues to make headlines. Michael Saylor hinted that MicroStrategy may once again increase its holdings. El Salvador continues daily BTC purchases, defying IMF recommendations. Pakistan announced plans to allocate 2,000 MW of excess electricity to Bitcoin mining and AI data centers, incentivized by tax breaks.

Luxury Swiss watchmaker Franck Muller also entered the scene with a Solana-inspired timepiece priced at $24,300—each engraved with a wallet-linked QR code. While innovative, it also raises concerns about security and physical exposure of crypto-linked assets.

Other Key Developments

Robinhood submitted a proposal to the SEC to tokenize real-world assets (RWA) under a unified national legal framework. The platform, dubbed RRE, would leverage Solana and Base blockchains to offer ultra-fast transaction speeds with integrated KYC/AML compliance.

JP Morgan and Ondo Finance completed their first tokenized bond trial on a public-permissioned hybrid model, marking a milestone in traditional finance integrating with DeFi. BlackRock’s IBIT fund is now the 8th largest out of 1,131 in their portfolio, just 15 months after launch.

Across the globe, regulatory shifts continue. The Hong Kong legislature passed a stablecoin licensing framework. Guatemala’s largest bank, Banco Industrial, integrated blockchain remittances via SukuPay. In India, the Supreme Court criticized the government for taxing crypto without clear legislation. Russia’s Justice Ministry is drafting laws to allow seizure of crypto assets in criminal investigations.

Final Thoughts

As President Trump calibrates trade negotiations, particularly with the EU and Japan, Bitcoin’s rise appears to be driven more by macroeconomic fundamentals—namely, inflation, dollar debasement, and capital seeking hard, non-sovereign assets—than by geopolitical tension alone. With a looming $13.8 billion BTC options expiry, a supportive ETF environment, and accelerating regulatory clarity, the stage is set for Bitcoin to test higher resistance levels. Altcoins may soon follow, but only if Bitcoin sustains its momentum.

Disclaimer:
This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making investment decisions.

Sources:
CNBC, Bloomberg, Deribit, U.S. Treasury Department, Reuters, SEC Speaks, On-chain data via Solscan, River Financial, Nakamoto Project.