June 9, 2025
By Sinan – Your Go-To for Crypto & Markets
It’s the start of the week, and while Asian stock markets are buzzing with renewed hopes for U.S.-China trade talks, Bitcoin and its crypto cousins are hitting the brakes. Hong Kong’s Hang Seng Index just shot past 24,000 for the first time since March – a clear sign of optimism in traditional finance. But for crypto, it’s a different story: we’re stuck in neutral, waiting for a clearer direction.
Bitcoin's Quiet Moment: What's Going On?
Bitcoin (BTC) is hovering around the $105,650 mark today, showing little movement, even leaning slightly negative. Yesterday, it carved out a "doji candle," which in trading lingo means the price is undecided. On top of that, Bitcoin's network activity is slowing down. According to Blockchain.com, the average daily transactions over the past week dropped to 315,480 – that's the lowest in at least a year! This dip in activity suggests crypto traders are feeling a bit cautious, especially with some big economic news just around the corner.
Altcoins: A Bit of a Snooze Fest
It’s not just Bitcoin feeling the lull. XRP tried to break free from a downward trend it’s been in since mid-May, but it just couldn’t do it. Trading at $2.24, it’s down over 1% today. Even with all the excitement surrounding the APEX 2025 conference in Singapore, XRP’s performance remains pretty subdued, likely because the broader market is just treading carefully.
And then there's Dogecoin (DOGE). The meme coin disappointed its fans, slipping nearly 2% to trade around $0.1816. It’s struggling to stay above its 100-day Simple Moving Average (SMA), which suggests that its short-term support might be weakening.
Hang Seng's Big Leap: Trade Talks Spark Joy!
The real excitement today was in Asian stock markets. Hong Kong’s Hang Seng Index jumped a solid 1.3%, closing above 24,000 for the first time since March 24! What’s behind this surge? Growing optimism that top trade officials from the U.S. and China are about to make some real headway in new talks kicking off in London.
As President Donald Trump himself said on Truth Social on Friday, “The meeting should go very well,” setting a positive tone for the upcoming discussions.
Adam Button from ForexLive even pointed out that “optimism is as high as it’s been since Trump’s election,” truly fanning the flames of bullish sentiment in the region. Other Asian markets, including South Korea’s KOSPI and China’s Shanghai Composite, also saw gains, even though China is still facing some economic hurdles.
China's Deflationary Worries: Will Stimulus Help?
China’s economy is still grappling with deflation, and the latest numbers aren't helping:
- The Consumer Price Index (CPI) dipped 0.1% year-over-year in May, continuing a negative trend since February.
- The Producer Price Index (PPI) saw a sharper drop of 3.3% year-over-year, worse than analysts expected.
Economist Robin Brooks believes that U.S. tariffs are acting as a deflationary shock, especially for Chinese exporters. He warns that all the ingredients for ongoing deflation are now in place: weak domestic spending, a heavy debt burden, and external trade pressures.
In response, China’s central bank has already:
- Cut key interest rates to historic lows.
- Reduced the reserve requirement ratio (RRR).
- And is reportedly gearing up for more liquidity injections to boost economic growth.
More stimulus from China could eventually trickle into crypto markets, potentially boosting investors' appetite for riskier assets.
The Big One: U.S. Inflation Data on Wednesday!
Mark your calendars! This Wednesday, the U.S. Consumer Price Index (CPI) for May is set to be a game-changer for global markets. Here’s what analysts are predicting:
- Headline CPI is expected to rise 0.2% month-over-month, translating to 2.5% year-over-year.
- Core CPI (which excludes volatile food and energy prices) is anticipated to climb to 2.9% year-over-year, up from April’s 2.8%.
If inflation turns out to be hotter than expected, it could mean the Federal Reserve delays any interest rate cuts, putting more pressure on both crypto and stock markets. However, a softer inflation reading could rekindle risk-on sentiment, potentially giving Bitcoin and altcoins a much-needed lift.
The Bottom Line
While traditional stock markets are riding high on trade talk optimism, crypto investors are remaining cautious. Bitcoin is flat, altcoins are underperforming, and network activity is showing signs of weakness. The next major event to watch is the U.S. inflation data, which could either reignite or further dampen the spirits in the digital asset space.
As macroeconomic forces continue to steer the market, crypto traders should brace themselves for potential volatility spikes mid-week.
Don’t miss out on our live CPI coverage and post-data market analysis – exclusively on Sinan's Crypto News!
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