Crypto Market Update: US-China Trade Deal Accelerates Rally
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Macroeconomics
Following the U.S.-China trade deal, markets jumped into a strong rally. Significant tariff reductions on both sides – from 145% to 30% for the U.S. and from 125% to 10% for China – reduce trade tensions and inflationary pressures. Combined with a weakening dollar, this significantly increases global liquidity and fuels the rise of risk assets like cryptocurrencies.
On the macroeconomic front, the U.S. economy continues to slow but not collapse. April inflation readings came in soft: consumer price growth was 2.3% year-over-year and producer prices unexpectedly fell 0.5%. Retail sales slowed and consumer confidence dropped to its lowest level in five months, but employment figures remained strong.
U.S. sovereign debt sustainability came into focus again as Moody's downgraded the country's credit rating from AAA to AA1. This could cause selling pressure in bond markets and momentary volatility in equity and crypto markets as well. However, the U.S. retains its position as the world's most liquid bond market.
Overall, the economic environment still provides a favorable foundation for risk assets. Bitcoin increasingly acts as a hedge against currency debasement and excessive government debt growth. Short-term reactions to Moody's decision may be sharp, but in the long run, the macro environment supports crypto market development.
Crypto News
Key Crypto News
Bitcoin Breaks $105,000
Bitcoin continued its rise and broke the $105,000 mark for the first time since January. The rally was supported by positive macro news and investor optimism. XRP and Dogecoin also joined the rally, with Dogecoin rising nearly 9% during the week. Moody's credit rating downgrade for the U.S. somewhat dampened sentiment, but Bitcoin's strength shows investors believe in its role as a digital store of value.
Coinbase Admits Data Breach
Coinbase announced a customer data breach affecting a small group of users. The leaked information included names, emails, and in some cases trading history and balance data. The breach was linked to a bribery case at a third-party support service. Coinbase has announced it will compensate for damages and has terminated its relationship with the vendor. The incident is estimated to cost the company up to $400 million.
Healthcare Company Buys $1 Billion in Bitcoin
Basel Medical Group, a U.S.-listed healthcare company, plans to purchase $1 billion worth of Bitcoin as part of its treasury management. This shows that Bitcoin is moving beyond the tech sector and finding its way onto the balance sheets of more traditional public companies.
Solana ETF Approval Delayed
The U.S. Securities and Exchange Commission (SEC) postponed its decision on Grayscale's proposed Solana ETF until October. The delay is part of a broader trend where the regulator approaches crypto funds outside of Bitcoin with caution.
Stablecoin Legislation Advances
The GENIUS Act may pass the U.S. Senate next week. The bill would create a comprehensive regulatory framework for stablecoins and define who can issue dollar-backed digital currencies. The legislation has support from both Democrats and Republicans, and its passage would be a significant step in U.S. crypto regulation.
Institutions
Corporate News and Institutional Highlights
BitGo Receives EU License
BitGo has received approval from Germany's BaFin for cryptocurrency custody services, enabling the company to operate in all EU member states under the MiCA regulatory framework. BitGo has opened headquarters in Frankfurt and received registration in several European countries.
Galaxy Digital Listed on Nasdaq
Previously listed in Canada, Galaxy Digital is now also listed on Nasdaq. According to CEO Mike Novogratz, the move to Nasdaq is related to the company's desire to improve liquidity and expand its investor base.
Anchorage Acquires Stablecoin Company Mountain Protocol
Anchorage Digital has announced the acquisition of Mountain Protocol to strengthen its stablecoin services for institutions. The acquisition supports Anchorage Digital's goal of making stablecoins a central part of the digital economy and compliant infrastructure.
UK Introduces Crypto Reporting Requirements
Starting in 2026, crypto service providers will be required to collect and report their users' personal information, addresses, tax identification numbers, and all transaction data. This is part of the international Cryptoasset Reporting Framework standard, aimed at preventing tax evasion and increasing transparency.
Ukraine Plans National Bitcoin Reserve
Ukrainian authorities are finalizing legislation for a national cryptocurrency reserve. The country already owns over $4.8 billion worth of Bitcoin, but an official state reserve has not yet been established. The legislation is expected to be presented to parliament soon.
Mastercard Expands Stablecoin Cards
Mastercard is partnering with MoonPay to launch stablecoin-based payment cards. The cards allow users to pay with stablecoins, which are automatically converted to fiat currency at the point of sale. The goal is to enable stablecoin payments globally.
Related Guides
What is a Stablecoin?
Complete guide to stablecoins, how they work and differences in the cryptocurrency world.
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