Daily News | Inflation Challenge is Imminent, Crypto Market is Generally Falling, BTC Traders Warn of Callback Risks; The Conviction of Trump Triggered Political Meme Fluctuations

2024-05-31, 03:49

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## Crypto Daily Digest: Inflation data will be released; BTC traders warn that BTC is experiencing another risk pullback; The conviction of Trump triggered political meme fluctuations; Paradigm led by raising $70 million for Babylon
Let's examine <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs’ trading activities. According to Farside Investor data, on May 30, Fidelity's Bitcoin spot ETF (FBTC) inflow was $119.1 million, Bitwise Bitcoin spot ETF (BITB) inflow was $25.9 million, ARK 21Shares Bitcoin spot ETF (ARKB) outflow was $99.9 million.

**US inflation data is about to be released, BTC traders warn that BTC is experiencing another risk pullback; <a href="/price/dogecoin-doge" target="_blank" class="blog_inner_link">Dogecoin</a> led the decline of major coins**
As traders closely monitor the upcoming US personal consumption expenditure inflation report on Friday, there is a risk of further decline in Bitcoin (BTC) prices, leading to a 5% drop in some of the largest cryptocurrencies within 24 hours. SHIB and DOGE led the market in decline, falling about 5% each. In addition, <a href="/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP</a>, SOL, and <a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> also fell by 2%, respectively, and the CoinDesk 20 (CD20) index fell by 1.6%.

At the beginning of this week, Bitcoin briefly rebounded to $70,000, but has since been testing support at $67,000. Last week, <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> (ETH) became one of the currencies with the largest gains due to favorable regulatory decisions, but since Monday, it has fallen by more than 5%.

In a Telegram interview, FxPro Senior Market Analyst Alex Kuptsikevich said, "In the most pessimistic scenario, prices may fall back to $60,000. A more optimistic scenario suggests that prices will fall to the $65,000 area, where the 50- day moving average is located."

The data for March increased by 2.7% year-on-year, while the data for April will be released tomorrow at 12:30 UTC time. In addition, on-chain analytics firm Glassnode has recorded signs of renewed interest among Bitcoin buyers. Long term BTC holders (defined as those who hold the asset for more than 155 days) have resumed their holdings for the first time since December 2023 after several months of selling off.

Traditional stock indices showed signs of weakness before the release of inflation data, which may provide clues for the Federal Reserve's interest rate trend. In history, due to tight market liquidity, rising interest rates often led to bearish sentiment among investors, leading to asset selling.

**Political memes fluctuated after the jury found Trump guilty in a historic trial**
After the trial of former US President Donald Trump ended, political memes associated with it experienced significant fluctuations.

According to data from crypto price tracking firm CoinGecko, a Manhattan jury has convicted Trump of 34 felonies of forging business records. A token called FreeTrump ($TRUMP) has soared 330% in the past day and is trading at $0.019. In addition, The Jeo Boden (BODEN) token increased by 9.2% during the same period, reaching $0.3319.

However, after Trump was sentenced, many political memes related to him experienced a decline in their prices. The MAGA (TRUMP) token has fallen 16.2% to $11.54 in the previous day, with 580,000 of the token held in Trump's related wallets. The MAGA VP (MVP) token, which suggests a connection to a potential vice presidential candidate for Trump, has fallen 16.5% in the previous day, dropping in price to approximately $0.48.

Overall, CoinGecko found that the market cap of PolitiFi memes has fallen by 0.1% in the past day, to approximately $1.56 billion.

**Paradigm led the fundraising of $70 million for the Bitcoin equity protocol Babylon**
The Bitcoin equity protocol Babylon raised $70 million under the leadership of venture capital firm Paradigm.

According to the company's announcement, Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, HTX Ventures, and others have also participated in this financing round.

Babylon has built an infrastructure that allows Proof of Stake systems to obtain staked capital from Bitcoin. The platform adopts a modular design and reduced functionality, allowing staking-based systems (such as blockchain, layer 2, DA layer, and oracle) to incorporate Bitcoin into staked and re-staked assets.

Babylon co-founder David Tse stated, "This funding will accelerate our mission to make Bitcoin a pillar of PoS system security. Our team is committed to promoting Bitcoin's practicality beyond its traditional role and enhancing the security of the entire blockchain ecosystem."

According to previous reports from The Block, Polychain Capital and Hack VC jointly led the $18 million Series A financing in December 2023.

## Market Trends
BTC fluctuated around $68,500. The rebound in BTC dominance indicates that investors may have chosen BTC again in their safe haven operations.

ETH fell below $3,500 and showed some weakness. This may be caused by the <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> of funds to BTC or other emerging tokens.

The general decline of Altcoins usually indicates a decrease in market preference for risk assets, with more funds flowing towards more stable mainstream coins.
### Macroeconomics:
The pullback in the US stock market after hitting a historic high may have affected investment sentiment in the crypto market. The decrease in the GDP growth rate may make investors more cautious and affect market liquidity.
### Market Hotspots:
The DOG of the BTC ecosystem RUNECOIN, ORDI, SATS: DOG and RUNECOIN surged, The market cap of DOG is close to the in_script_ion leader ORDI, indicating a strong interest in these emerging tokens in the market.

The AR of AI concept has surged, and the official project will issue a new currency, AO. AR can be used to replace AO, and AO will transform into an AI public chain. This shows the market’s high expectations for the combination of AI technology and blockchain. The issuance of new coins usually drives up the price of existing tokens, as investors hope to occupy a favorable position in new projects.

Ton ecosystem Meme coin NOT: NOT has surged, increasing nearly 200% in the past week. As an official Meme token issued by Ton, it will be used for gas fees in Ton Wallet in the future and as a payment medium for other small games in the Ton ecosystem. This increase may be due to its practical application scenarios and future potential to attract a large amount of investment.

Cross-chain bridge STG: STG rose sharply, with intraday amplitude exceeding 100%. Launching the cross-chain bridge on the Korean exchange may bring a large influx of new funds, with the old currency washing for a longer period and a significant pulling effect. Cross-chain bridge projects are generally of interest as they address interoperability issues between different blockchains.

Bankruptcy concept token LUNA USTC: LUNA and USTC have surged, and there are rumors in the market that Luna founder DK is about to reconcile with the US SEC, which may be seen as positive news. The rise of Bankruptcy concept tokens is usually driven by market sentiment and speculative behavior.
### Summary and Prospect
The recent market performance has shown a strong interest among investors in emerging tokens and specific ecosystems, while also reflecting a cautious attitude towards macroeconomic uncertainty. Focusing on the trend changes of BTC and ETH, as well as the market performance of emerging tokens, may provide important references for investment decisions.

## Macro: Inflation challenge is imminent, US stocks close lower, Asian stock markets rise
### The US stock market closed lower on Thursday, with the NASDAQ index falling more than 1%
On Thursday, May 30, Reuters reported that the US stock market closed lower, with the NASDAQ index falling more than 1%, and technology stocks are declining due to disappointing performance forecasts from Salesforce. Data released on Thursday showed that the economic growth of the United States in the first quarter was lower than expected, and consumer spending fell, putting pressure on the yield of US treasury bond bonds and the US dollar.

The main indicators are as follows: the Dow Jones index fell 0.9%, the S&P 500 index fell 0.6%, and the Nasdaq index fell 1.1%.

A report from the US Department of Commerce shows that before the release of the April personal consumption expenditure report on Friday, the US economy grew slower than expected in the first quarter, mainly due to a decrease in consumer and equipment spending. A key inflation indicator also slightly declined.

Despite the strong labor market, Federal Reserve policymakers expect inflation rates to decline this year, so they are not in a hurry to lower policy rates from the 5.25% - 5.5% range maintained since July last year.

According to the FedWatch tool of the Chicago Mercantile Exchange Group, the yield of US treasury bond bonds fell after the data was released that day, and the possibility of cutting interest rates by at least 25 basis points in September rose to 50.4% from 48.7% before the data was released. Earlier this week, bond yields hit a new weekly high.

On Thursday evening, a New York jury ruled that former President Donald Trump was guilty of forging documents to cover up his payment of a celebrity's sealing fee before the 2016 election, causing his media conglomerate's stock price to drop by 6.5%. Truth Social, the parent company of Trump's majority stake, had a post closing stock price of $48.44 and a closing price of $51.12 during normal trading hours on Thursday, with a valuation of $9 billion.

**Asian stock markets rise, US dollar fluctuates, inflation challenge is imminent**
Asian stock markets rose on Friday, and were expected to rise for the fourth consecutive month, while the US dollar fell and the Japanese yen remained stable. Investors are waiting for inflation data from Europe and the United States, which may determine the trend of global interest rates.

The MSCI Asia Pacific stock index fell 1.2%. The Nikkei index in Japan rose 0.20% and remained unchanged this month. The Chinese blue chip index rose 0.23%, while the Hong Kong Hang Seng index rose 1.3%.

This week, the official Purchasing Managers Index report for May in China, a series of important economic indicators in Japan (including retail sales, industrial production, and Tokyo inflation), and the first quarter gross domestic product of India and Taiwan will be released. It is expected that the Purchasing Managers Index (PMI) in China will show that the growth rate of manufacturing activity in May was similar to last month, with manufacturing activity barely maintaining an expansion trend last month, highlighting the fragility of the recovery of the world's second largest economy.

In addition, as the yen exchange rate approaches levels suspected of triggering intervention at the end of April and beginning of this month, traders are wary of any signs of intervention from Tokyo authorities. The latest price of the Japanese yen against the US dollar was 156.74, and it hit a four-week low of 157.715 on Wednesday. On April 29, the Japanese yen fell to a 34-year low of 160.245 against the US dollar, triggering at least two rounds of suspected intervention.

Regarding commodities, the unexpected increase in US gasoline inventories has put pressure on the market, leading to a decline in oil prices. Brent crude oil futures fell 0.31% to $81.61 per barrel, while West Texas Intermediate (WTI) futures in the United States fell 0.36% to $77.63 per barrel.

Gold prices rose 0.12% to $2,345.93, with a potential increase of over 2% in May.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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