Despite a series of recent negative economic, political, and geopolitical news, US equities have once again reached new all-time highs. Bitcoin continues to maintain its high price levels, with numerous institutional investors quietly and openly accumulating the digital asset.

Market Overview

Trading on Thursday, June 26th, concluded with gains across all three major US stock indices: the Nasdaq rose approximately 1%, the Dow Jones saw a similar increase, and the S&P 500 climbed 0.8%. Following the session, futures indicated that the market could continue to hit new highs in the next trading session, especially for the Nasdaq and S&P 500. Oil prices saw a slight increase to $65.4 per barrel. Gold experienced a minor correction, falling to $3328 per ounce.

Recent key US economic data reveals a weakening growth picture. Specifically, the US Q1 GDP was revised downwards to -0.5%, lower than the forecasted -0.2% and the previously announced figure on May 19th. This downward revision suggests the US economy is weaker than initially estimated, raising concerns about decelerating growth amid high interest rates and signs of weakening consumer spending.

Conversely, initial jobless claims came in at 236,000, lower than the previous period's 246,000, indicating that the labor market remains relatively stable in the short term.

Bitcoin experienced a slight correction but maintained its position around $107,000. Most major altcoins continued their decline. The overall crypto market capitalization stands at $3.4 trillion.

The percentage of BTC in profit when Bitcoin is around this price level is 96.3%. This high percentage of profitable holders suggests strong underlying support and long-term conviction among Bitcoin investors.

On Thursday, US Bitcoin spot ETFs continued to see inflows, though at a reduced rate compared to the previous session. Total inflows into these funds amounted to $226.7 million, with the majority coming from BlackRock's IBIT fund. ETH spot ETFs, however, saw outflows of $26.4 million. This divergence highlights a continued preference for Bitcoin exposure through traditional investment vehicles.

We've observed that the market has recently weathered a barrage of negative news—from economic downturns and political instability to geopolitical conflicts. Yet, US equities have still reached new highs. In this context, financial markets remain constantly influenced by numerous "big stories," ranging from trade wars and Middle East conflicts to concerns over rising oil prices.

Investors, especially retirees who no longer have new income streams, are particularly susceptible to negative news and may make fear-driven decisions to sell assets, leading to long-term financial consequences. In such times, one should always ask if the news impacts their core investment thesis. If not, it's crucial to stick to one's investment strategy and principles. There will always be times when the market is dominated by fear. The key is to adhere to investment principles based on long-term conviction and a clear understanding of why one is investing. By broadening one's perspective, investors will realize that markets have endured and overcome numerous similar crises throughout history.

BlackRock CEO Warns of Soaring US National Debt

In a recent letter to shareholders, Larry Fink, CEO of BlackRock—the world's largest asset manager—issued a grave warning about the state of US public finances. He stated that since 1989, US national debt has grown at three times the rate of GDP growth, indicating an increasingly severe trend of uncontrolled spending.

This year alone, interest payments on US government debt are projected to exceed $952 billion—an alarming figure, surpassing the national defense budget. Fink forecasts that if this trend continues, by 2030, all government revenue will be consumed by mandatory spending and interest payments, pushing the United States into a state of perpetual budget deficit.

He warned that without effective control measures, the US will gradually lose its global economic standing, particularly to digital assets like Bitcoin. As national debt spirals, accompanied by ballooning interest costs and deficits, politicians remain reluctant to raise taxes for fear of losing voter support. The result is a familiar cycle: printing more money and devaluing the US dollar to finance increasingly bloated expenditures. This is a concerning trend that could erode confidence in the USD, while decentralized assets like Bitcoin gain increasing attention as a viable alternative.

Tariff Updates: US Trade with China, India, and the EU

President Donald Trump stated that the United States has just signed a new trade agreement with China, while also hinting at the possibility of an upcoming major deal with India. In his remarks, he emphasized: "Yesterday we just signed a deal with China. That's right, just signed with China." He also suggested that not every country requires negotiation, as "with some countries, you just send a thank you letter and then impose 25%, 35%, 45% tariffs. That's much easier." However, he revealed that his administration associates are pursuing more agreements and may soon reach a large-scale trade deal with India, similar to what was achieved with China.

Conversely, European Commission President Ursula von der Leyen confirmed that the European Union has received updated documents from the US side and is currently analyzing them to continue trade negotiations. She informed EU leaders about the progress of dialogue with the US, reiterating that she and President Trump had a positive exchange at the G7 Summit in Canada, where both agreed to strive for an agreement before July 9th. However, the European Commission President also affirmed that the EU is prepared for even the worst-case scenarios. The Union has prepared a list of retaliatory measures to protect European interests if negotiations fail. According to her, all options are currently under consideration.

Additionally, the Trump administration is also exploring options related to the deadline for import tariffs. Previously, on April 9th, Trump temporarily suspended tariffs on imports exceeding a 10% tariff rate for 90 days, to allow relevant countries time for negotiations. The deadline for this extension will end on July 8th. According to White House spokesperson Karoline Leavitt, the President may decide to extend this period further, but also does not rule out the possibility of unilaterally imposing new tariffs if agreements are not reached. Leavitt emphasized: "The President may choose a reciprocal tariff rate that he believes is beneficial to America and American workers."

Ripple vs. SEC: Judge Torres' Resolute Ruling Prevents Settlement Bypass

Judge Analisa Torres has rejected a joint motion from Ripple and the SEC to conclude their lawsuit, a move that reinforces the integrity of the judicial process in crypto regulation.

Why Did the Judge Deny the Appeal?

Judge Torres is demonstrating a firm stance to protect the integrity of the legal system and public interest. She emphasized: "The parties do not have the right to privately agree not to be bound by a final judgment of the court." In other words, even if both parties secretly agreed to overturn the ruling, it would not be permitted, because a court judgment is a public act, not a private contract between two parties. Her decision is based on a full judicial process with evidence and serves the public interest, especially concerning crypto regulation in the US.

She stressed that Ripple and the SEC have only two paths: either they withdraw their appeal and accept the current ruling, or they follow the proper appellate procedure.

What Was the Original Ruling?

In July 2023, Judge Torres issued a landmark decision:

• Ripple violated securities law by selling XRP directly to institutional investors without registration, as this constituted an investment contract with a promise of profit.
• However, she also declared that XRP tokens traded on secondary exchanges (like crypto exchanges) are not securities, because buyers do not expect profit from Ripple's efforts. This does not meet the criteria of the "Howey Test" in US securities law.

This decision was widely praised for being one of the first rulings to clearly differentiate between forms of crypto transactions, setting an important precedent for the industry.

Why Is This Important?

Ripple remains subject to penalties and bound by the court's regulations. This means that direct sales of XRP to institutions are still considered an investment contract, because buyers directly provided funds to Ripple with the expectation that Ripple would increase the value of the XRP token, unlike purchases on exchanges where the seller could be anyone. This ruling remains a crucial legal standard in determining when crypto is considered a security.

Judge Torres is upholding the rule of law, preventing large companies from secretly reversing legal history through private agreements, especially in high-profile cases that have the potential to set legal precedents for the burgeoning crypto industry.

Progress in US Crypto Legislation & National Bitcoin Reserve Plans

Recently, David Sacks, White House Crypto Advisor, extended his gratitude to Senate Banking Committee Chairman Tim Scott and Digital Assets Subcommittee Chair Cynthia Lummis for unveiling a clear plan for comprehensive crypto market regulation, including:

• The Crypto Infrastructure Bill (CLARITY) to be introduced before the August recess.
• Detailed discussions to take place during the first week of September.
• Completion of the entire process by the end of September.

He also added that, "President Trump supports the CLARITY bill on market structure and GENIUS on stablecoins." This indicates a strong political will behind establishing clear regulatory frameworks for digital assets.

In addition, Bo Hines, a White House advisor, recently confirmed that the US government is beginning to build the necessary infrastructure for a national Bitcoin reserve. He stated that several government agencies already hold Bitcoin in various forms, and now is the opportune time to move towards establishing a formal, organized reserve system.

While this plan is not yet mandated for public disclosure, Hines indicated that the US might choose to share information at an appropriate time in the future. He emphasized that the administration consistently views Bitcoin as "digital gold" and believes it is in America's best interest to own as much Bitcoin as possible. This reserve, he stressed, needs to be built in a budget-neutral manner, without creating additional cost burdens for citizens. Various innovative initiatives are currently being considered to achieve this goal effectively and sustainably.

Other Key Crypto Updates

Bakkt Holdings Inc. has filed an updated investment policy, indicating that the company may purchase up to $1 billion in Bitcoin. This significant allocation potential underscores growing corporate confidence in BTC.

Galaxy Digital has successfully raised $175 million for its first venture capital fund using external capital, exceeding its $150 million target. The fund focuses on sectors such as stablecoins, asset tokenization, payments, and software infrastructure. Galaxy has already deployed $50 million into projects like Monad and Ethena. Despite a $295 million loss in Q1 2025, the company maintains a strong position, being listed on Nasdaq and managing $7 billion in assets.

Metaplanet has now surpassed Tesla to become the 7th largest publicly traded company globally by BTC holdings. As of June 24, 2025, Metaplanet had fully repaid three tranches of bonds totaling $281 million ahead of schedule, thanks to raising $500 million through additional share issuance, despite a 9% share dilution. The raised capital was primarily used to clear a significant portion of its debt, strengthening its balance sheet. Despite the dilution, Metaplanet's stock has surged 368% year-to-date, indicating market approval of its long-term strategy. After clearing debt, the company continues to acquire more Bitcoin, increasing its holdings to approximately 20% of total assets, and may repeat this strategy, demonstrating a bold and successful Bitcoin-centric corporate strategy.

Hong Kong recently unveiled its "LEAP" regulatory framework aimed at promoting the development of digital assets. Starting August 1st, stablecoins will be officially licensed; authorities such as the SFC, FSTB, and HKMA will collaborate to regulate exchanges, wallets, and amend laws to support asset tokenization, including real estate and bonds. The government also permits public trading of tokenized bonds and ETFs with tax incentives, expanding applications to gold and renewable energy, and supporting blockchain startups through the Cyberport fund. The stablecoin law has been passed, and a framework for crypto derivatives trading is being prepared. This comprehensive approach positions Hong Kong as a leading global hub for digital asset innovation.

Shares of Guotai Junan have surged nearly 200% over the past two days, as it became the first mainland Chinese company to be permitted by Hong Kong's SFC to offer crypto trading services. This development is significant, hinting at a potential softening of crypto stances for mainland Chinese entities through Hong Kong.

Sources

• Bloomberg
• CoinDesk
• U.S. Treasury
• TradingView
• Reuters
• SEC
• White House Press Office
• Larry Fink's Letter to Shareholders (BlackRock)
• Guotai Junan Investor Relations

Disclaimer

This article is for informational purposes only and should not be considered financial advice. Please do your own research before making investment decisions.

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