Larger cryptocurrencies showed some bullish momentum on Monday, even when the hope of trade negotiations in US-China lifted Asian shares.
Bitcoin
The leading cryptocurrency with market value, traded flat-to-negative near $ 105,650, after carving a doji light, a sign of indecision, on Sunday, according to data source trading.
Data from Blockchain.com showed a significant slowdown in networking activity, with the seven-day sliding average of daily on-chain transactions dropped to 315.48K, the lowest in at least one year.
Payments-focused Cryptocurrency XRP struggled to gather upside down despite having topped a Bearish Trendline from mid-May heights. Cryptocurrency changed hands to $ 2.24 at the press time, down over 1% on the day (UTC). Volatility can rise this week when the XRP Ledger’s Apex 2025 conference starts in Singapore.
Meme Cryptocurrency Doge traded almost 2% lower and closed in 18 cents after failing to establish a foothold over the 100-day simple sliding average (SMA) over the weekend.
Hang bed tops 24k
Hong Kong’s Hang Bed -Index rose 1.3%and topped the 24,000 mark for the first time since March 24, according to Data Source TradingView. The move came in response to the optimism about the trade negotiations in the US China this week.
“Optimism is as tall as it has been since Trump’s choice that top trading spokesmen meet in London, starting Monday. There are indications that conversations will go all week and Trump himself is optimistic,” said Forexlive’s Chief Currency analyst Adam Button in a blog post.
“The meeting was going to go very well,” President Donald Trump said of the truth social Friday, announcing the new round of trade negotiations in London.
Other Asian indices, such as South Korea’s Kospi and China’s Shanghai composite, also gained space despite the detailed consumer and factory defeat in China.
China’s deflation worsens
China’s consumer prices fell 0.1% year-over-year in May, according to data from the National Bureau of Statistics released on Monday. CPI first became negative in February.
Meanwhile, producer Price Index or Factory Gate prices dropped 3.3% year-over-year in May, recording a sharper fall than the 3.2% fall formalysts had expected. The prices of factory gate have been in deflation since October 2022.
According to Robin Brooks, Senior Fellow in Global Economy and Development Program at the Brookings Institution, US tariffs generate a deflation shock for major exporters like China.
“China’s producer price inflation for consumer goods is down to its lowest level since the crisis of 2008. US tariffs will now push China into full deflation. All necessary conditions for deflation are: weak consumption and a debt overhang. US tariffs are now the catalyst …”, Brooks said at X.
The worsened deflation could cause China to stimulate domestic demand with further liquidity relief.
China’s central bank in May reduced the main interest rates by 10 basic points to a historically low while reducing the reserve requirements, releasing liquidity on the market. Last week, the state -owned China Securities Journal reported that People’s Bank of China may lower the reserve requirements further later this year to support growth and restart government bond trade.
More Chinese stimulus could bode well to financial markets, including cryptocurrencies.
Focus on us cpi
The US Consumer Price Index for May, which is due Wednesday, will be investigated by markets for clues that Trump’s tariffs add to price pressure in the economy.
The heading CPI shows Matching April’s pace of 0.2% month to month growth, which corresponds to an annual increase of 2.5% against April increase of 2.3%, according to FXSREET. Mowed if core inflation, which excludes the unstable food and energy component, is expected to have crossed higher to 2.9% in May from 2.8% in April.
Economists at Barclays expect the data to show the first signs of customs -related price increases across a wide range of nuclear products.
A warmer than expected printing could cut down cuts of the fed, which potentially inject the volatility in the financial markets.
