U.S. Market Snapshot and Oil Outlook

On Thursday, May 29 (U.S. time), Wall Street closed higher with the Dow Jones rising 0.28%, the S&P 500 up 0.4%, and the Nasdaq advancing 0.39%. However, futures edged slightly lower as investors weighed fresh economic and political developments. Commodities pulled back as gold settled near $3,311 per ounce and crude oil dipped to $60.9 per barrel.

The decline in oil prices came amid reports that eight OPEC+ nations — including Russia, Saudi Arabia, Iraq, and the UAE — may increase oil production by up to 411,000 barrels per day starting in July. The official announcement is expected on May 31, and markets are watching closely for the potential impact on energy inflation.

Bitcoin and Crypto Market Reaction

Bitcoin slid slightly toward $106,000, with most major altcoins also registering minor losses. The total crypto market capitalization contracted to $3.47 trillion.

Notably, U.S. Bitcoin spot ETFs recorded a net outflow of $346.8 million on the day, signaling investor caution amid macro headwinds. However, BlackRock’s IBIT fund bucked the trend, drawing in $125 million in net inflows. Ethereum spot ETFs also saw positive flows, attracting $91.9 million.

Trump’s Tariff Policy Reinstated After Appeal

The ongoing legal saga over former President Trump’s tariff authority took a sharp turn as the U.S. Court of Appeals reversed a lower court decision and reinstated his trade tariffs. Trump’s team is now preparing to request emergency intervention from the Supreme Court, aiming to suspend the federal ruling that previously blocked the tariffs.

White House spokesperson Karoline Leavitt strongly criticized the three judges who struck down the reciprocal tariffs, accusing them of judicial overreach. She urged the Supreme Court to step in, framing the dispute as a battle for constitutional clarity and national credibility. The judges — Jane Restani (appointed by Reagan), Timothy Reif (Trump), and Gary Katzmann (Obama) — are being scrutinized for their interpretations of the International Emergency Economic Powers Act (IEEPA).

Trump’s legal counsel argues that the original ruling was based on a “misguided and dangerous interpretation” of presidential authority. Their appeal to the Supreme Court aims to avoid what they call “grave economic and national security harm.”

Meanwhile, another judge in Washington, D.C., issued a separate ruling declaring several of Trump’s tariffs unlawful. This mounting legal tension is now shaping up to be a pivotal battle over executive power and trade policy in the lead-up to the 2024 election.

U.S.–China Trade Talks Stall

In an interview with Fox News, Treasury Secretary Scott Bessent admitted that negotiations with China are currently at a standstill. However, he hinted that new discussions could take place within the next few weeks and revealed that President Trump may soon speak directly with Chinese President Xi Jinping to reinvigorate the talks.

Bessent emphasized the complexity of the issues involved and asserted that high-level engagement would be necessary to unlock progress. He expressed optimism that clear positioning from Trump could push Beijing to return to the negotiating table.

Trump Meets Fed Chair Powell — Interest Rate Debate Ongoing

President Trump met with Federal Reserve Chair Jerome Powell on Thursday — their first official meeting since Trump began his second term. Trump reportedly criticized Powell, saying, “Not cutting rates is a mistake.” However, the Fed stated that monetary policy was not discussed during the meeting.

Instead, the conversation centered around economic performance indicators such as GDP, employment, and inflation. Powell reiterated the Fed’s commitment to making future rate decisions based on incoming data, independent of political influence. This stance aligns with the Fed’s dual mandate to promote maximum employment and price stability.

The revised Q1 GDP print showed a contraction of -0.2%, slightly better than the initial -0.3% estimate. Powell attributed the weakness to pre-emptive inventory accumulation ahead of anticipated tariffs and stressed the need to observe further data, particularly on inflation and the labor market, before adjusting policy.

Despite Trump’s public pressure, the Fed remains cautious. U.S. bond yields rose again, reinforcing expectations that interest rates will stay elevated for longer. The interplay between trade policy, fiscal expansion, and tight monetary policy continues to weigh heavily on financial markets.

Global Bitcoin Sentiment and Adoption

At the Bitcoin 2025 Conference, several prominent figures and institutions reaffirmed their belief in Bitcoin as a long-term financial asset.

French football club Paris Saint-Germain (PSG) announced that it has held Bitcoin in its financial reserves since 2023 and has launched PSG Labs to incubate Bitcoin-based startups and innovations. The initiative leverages PSG’s global fanbase to drive product adoption and network expansion.

U.S. Vice President JD Vance emphasized that Bitcoin and digital assets are now legitimate components of the mainstream economy. He committed to removing barriers that prevent crypto from integrating fully with the financial system.

Eric Trump added that institutional interest in Bitcoin is accelerating globally, spanning from the U.S. to the Middle East, Africa, and Asia. He noted that OTC supply is drying up even as demand surges. He also highlighted the divisibility of Bitcoin, stressing that even 0.1 BTC could hold tremendous value in the future.

In a lighthearted anecdote, Eric Trump recalled advice from MicroStrategy CEO Michael Saylor: “Mortgage Mar-a-Lago, pull out $2 billion, and buy Bitcoin.” While Trump joked that his father might disapprove, he praised Saylor as the “greatest Bitcoin advocate of our time.”

Fed, Courts, and Markets: An Interlinked Web

The convergence of monetary policy, legal rulings, and geopolitical trade decisions has created a uniquely complex macro environment. The reinstatement of Trump’s tariffs, the Fed’s data-dependent stance on interest rates, and China’s trade inertia collectively shape investor sentiment across equities, commodities, and digital assets.

Each policy move, whether from the Fed or the executive branch, reverberates through bond markets and risk assets. Bitcoin, as an increasingly institutionalized asset, now reacts to these macro signals more than ever.

As such, understanding the legal, fiscal, and monetary framework shaping the U.S. economy is critical not just for traditional investors, but also for anyone participating in the crypto space.

Highlights from Crypto Regulatory and Institutional Front

Additional updates from around the crypto landscape include:

• Hidden Road, a Ripple-owned firm regulated by the UK’s FCA, now offers U.S. institutions access to OTC crypto swaps.
• The U.S. House of Representatives introduced a new version of the crypto market structure reform bill, marking a significant regulatory milestone.
• SEC and Binance jointly filed to dismiss their ongoing lawsuit, signaling a potential shift in enforcement strategy.
• SEC clarified that staking services, including staking-as-a-service and self-staking, are not securities under existing rules.
• K33, a Norwegian crypto broker, raised $6.2 million to accumulate more Bitcoin, believing BTC will outperform all assets over the next decade.

Final Thoughts

With Bitcoin hovering near $106,000, institutional sentiment remains strong despite short-term market volatility. As regulatory frameworks evolve and global trade policies shift, Bitcoin’s position as a hedge and store of value appears to be solidifying. Trump’s renewed engagement with Fed policy, legal battles over trade authority, and rising geopolitical tensions with China all underscore the importance of decentralized alternatives in an increasingly uncertain economic landscape.

Disclaimer

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