Large Cryptocurrencies showed little Bullish Momentum on Monday, even when the hope of the trade interviews of the USA-China increased Asian shares.
Bitcoin
The leading cryptocurrency on market value, flat to negatively traded in the vicinity of $ 105,650, after he had carved a DOJI candle, a sign of indecision, on Sunday, according to data source TradingView.
Data of Blockchain.com showed A clear delay in network activity, with the seven -day advancing average of daily transactions on chains up to 315.48K, the lowest in at least a year.
Payments-oriented cryptocurrency XRP
Struggled to collect an upper traction, despite the top of a bearish trendline from the highs of the middle of May. The cryptocurrency changed owner of $ 2.24 at the time of the press, more than 1% in the day (UTC). The volatility can increase this week as the APEX 2025 conference of the XRP whides starts in Singapore.
Meme cryptocurrency dogecoin
Exchanged almost 2% lower and closes at 18 cents, after he had not set a foothold in the weekend above the 100-day simple advancing average (SMA).
Hang Seng Tops 24K
The Hang Seng index of Hong Kong rose by 1.3%and was at the top of the 24,000 marking for the first time since 24 March, according to Data Source TradingView. The move came in response to optimism about the trade discussions of the US china this week.
“Optimism has been as high as it has been since the Trump election as the top trade will meet delegates in London from Monday. There are indications that conversations go all week and Trump himself is optimistic” said In a blog post.
“The meeting should go very well,” said President Donald Trump about Truth Social Friday and announced the new Tour of Commercial Messages in London.
Other Asian indices, such as Kospi in South Korea and the Shanghai composite of China, also gained ground despite the deepening of the consumer and the factory in China.
China’s deflation is deteriorating
China’s consumer prices fell 0.1% on an annual basis in May, according to data from the National Bureau of Statistics on Monday. The CPI became negative for the first time in February.
In the meantime, the producer Price Index of Factory Gate prices fell by 3.3% on an annual basis in May and registered a sharper decrease than the 3.2% drop analysts had expected. The prices of the factory rail have been in deflation since October 2022.
According to Robin Brooks, senior fellow in the global economy and development program of the Brookings Institution, the American rates generate a deflatory shock for large exporters such as China.
“The price price inflation of China for consumer goods comes to the lowest level since the 2008 crisis. American rates will now push China in full deflation. There are all the necessary conditions for deflation: weak consumption and an overhang of debts. American rates are now the catalysator …”, Brooks on X.
The deteriorating deflation can cause China to stimulate domestic demand with further liquidity dependence.
The Central Bank of China in May Lower the most important interest rates By 10 basic points to a historic layer while the ratio of the reserve requirement is reduced, releasing the liquidity on the market. Last week, the China Securities Journal run by the State reported that The People’s Bank of China can further reduce the reserve requirement later this year to support growth and restore trade in the government bonds.
More Chinese stimulans can predict well for financial markets, including cryptocurrencies.
Focus on our CPI
The American consumer price index for Wednesday May will be investigated by markets for instructions that contribute to Trump’s rates to price pressure in the economy.
The Headline CPI is seen at the pace of April of 0.2% month-on-month growth, which corresponds to an annual increase of 2.5% compared to the increase of 2.3% of April, according to FXSTREET. In the meantime, the core inflation, which excludes the volatile food and energy component, is expected to be stopped higher in April to 2.9% of 2.8%.
Economists at Barclays to expect The data to show the first signs of rates that increase related price increases over a wide range of core products.
A hotter than expected print can dent with the lowering of the fed rate, which means that possibly downward volatility can be injected into financial markets.