Price Action:

• Bitcoin’s recent pullback from $112,000 to $108,400 occurred amid high funding rates of 100 basis points, with liquidations primarily affecting short positions totaling $687,000 out of $704,000 total. Technical indicators suggest strong support levels, with the 20-day SMA at $102,600 and the 30-day VWAP at $100,900.
• Ethereum traded between $2,626 and $2,678 with elevated funding rates at 0.74 bps, experiencing $782K in liquidations mostly from short positions. While currently below the 200-day moving average of $2,703, the asset maintains support above the 20-day SMA at $2,334 and 30-day VWAP at $2,232.
• Notable movers today include MOODENG(-12.6%), SUI(-7.1%), TRUMP(-9.4%), XRP(-3.9%), DOGE(-5.9%)

Friday

• President Trump intensified his trade war by targeting Apple (AAPL), warning that the company could face higher tariffs unless it manufactures iPhones in the United States. He also criticized the European Union and proposed a flat 50% tariff on all goods imported from the EU, set to take effect next weekend.
• European markets fell sharply after Trump’s announcement of potential 50% tariffs on EU goods from June 1, causing the STOXX 600 to drop 2%. Asian trading was mixed, with Japan’s Nikkei up 0.47% and China’s Shanghai Composite down 0.9%.
• Oil prices fell as OPEC+ indicated possible supply increases, with Brent crude dropping to $64.29 per barrel. US bond yields remained high with the 10-year at 4.5% and 30-year above 5%.

Thursday

• Trump’s tax bill cleared the House of Representatives with projections indicating it would add $3.8 trillion to the federal debt over ten years, triggering immediate market reactions. Treasury yields responded sharply, with the 30-year yield reaching 5.15%.
• Global equity markets declined significantly, with the Dow Jones dropping 2% and similar losses seen across Asian and European indices. The U.S. dollar weakened against major currencies as international investors reduced exposure to U.S. assets.
• A weak U.S. Treasury auction combined with Moody’s recent credit rating downgrade intensified market concerns, while the bill awaits Senate review.

Wednesday

• US Treasury yields reached significant levels, with the 30-year yield hitting 5% and the 10-year reaching 4.53%. Target’s shares fell after the company reduced its sales forecast due to consumer concerns about tariffs and DEI initiatives.
• Oil prices increased by over 1% in response to reports suggesting possible Israeli strikes on Iranian nuclear facilities. The Sensex and Nifty indices recovered with 0.5% gains, ending a three-day decline driven by banking and pharma sector strength.
• Moody’s downgrade of US credit rating impacted market sentiment, while the dollar weakened against major currencies. Gold prices increased as investors sought safe-haven assets.

Tuesday

• A bill aimed at regulating stablecoins cleared an important procedural step in the U.S. Senate on Monday night, setting the stage for possible final approval later this week—a development supported by the crypto industry. However, the legislation still encounters resistance from some Democratic lawmakers, including Senator Elizabeth Warren, who voiced her objections to the bill during Monday night’s Senate session.
• Moody’s downgraded U.S. credit rating to Aa1 from Aaa, causing U.S. stock futures to point lower with S&P 500 futures down 0.4% in pre-market trading. Treasury yields stabilized while the U.S. dollar weakened against major currencies.
• China and Australia’s central banks implemented rate cuts, with China lowering benchmark lending rates by 10 basis points. European markets tracked higher with the Stoxx Europe 600 rising 0.4%, supported by utilities and telecom stocks.

Monday

• U.S. bonds, stocks, and the dollar declined after Moody’s downgraded the government’s credit rating, amplifying concerns about the appeal of American assets. Gold rose, while S&P 500 futures fell 1% following a five-day rally. Global equities also slipped, and 30-year Treasury yields climbed above 5%—a level not seen since November 2023. The euro strengthened as the dollar weakened broadly.
• Moody’s cited worsening fiscal conditions and rising deficits, joining Fitch and S&P in rating the U.S. below AAA. While acknowledging America’s economic strength, the agency said it no longer fully offsets the country’s weakening fiscal position.
• Morgan Stanley’s Michael Wilson suggested investors should buy any pullbacks, noting that the earnings season ended strong and profit upgrades support further gains, even amid trade uncertainties.
• In Asia, China’s industrial output beat expectations, but consumer demand lagged, underscoring persistent economic headwinds despite easing U.S. trade tensions.
• Meanwhile, Fed’s Raphael Bostic reiterated expectations for one rate cut this year while voicing continued concern over inflation.