As the weekend approaches for cryptocurrencies, Bitcoin has surrendered much of yesterday’s gains, now trading at $80,600. Despite ongoing upward momentum, BTC remains unable to fully price in persistent inflation. While Donald Trump delivered significant statements today, tensions with Iran remain unresolved and much of the positive sentiment in crypto can currently be attributed to progress on the CLARITY Act.
Market overview and Trump’s impact
A wave of selling in bond markets has put a pause on equity market gains. The AI-driven rally in the S&P 500 is losing steam, with Nasdaq 100 futures down 1.4% and S&P 500 futures falling 0.9%. These declines reflect ongoing increases in bond yields and a lack of progress toward reopening the Strait of Hormuz.
Oil supply from the Middle East is not expected to normalize soon, sparking renewed selling in government bonds across the US, Europe, and Asia. This could soon lead to intensifying concerns over inflation and global growth. Strong wholesale inflation numbers from Japan also signal rising price pressures across the global economy.
Profit-taking in South Korea’s tech giants Samsung Electronics and SK Hynix dragged the Kospi index down by 6.1%. Meanwhile, Nvidia fell 2.3% in pre-market trading after a streak of seven consecutive session gains, demonstrating growing risk aversion among investors.
Japan’s 30-year bond yield reached 4% for the first time since 1999. Given current market volatility, the resurgence of carry trade debates is the last thing investors want to see erode risk appetite further.
Key Trump statements
Yesterday, Trump’s suggestion that China could assist with the Strait of Hormuz crisis and the CLARITY Act moving through committee briefly spurred a sharp Bitcoin rally. However, as discussed earlier, the move was short-lived amid broader market pressures. Market participants are now watching whether the $80,400 support holds. If selling intensifies, BTC could revisit the $78,000 to $75,000 range.
Donald Trump’s remarks highlighted several critical points on global issues:
“On Iran, we have resolved many issues that others could not solve. We share common views on the outcome; we oppose their nuclear armament and want to keep the straits open.
With China, we have reached numerous agreements. Our bilateral relations will definitely improve. Nothing has changed on Taiwan; we are not seeking conflict and I have made no commitments on the issue. We have not discussed tariffs with China, but talked about cooperating in artificial intelligence. We also reached a soybean deal. The last thing we need now is another war.
I would accept Iran suspending its nuclear program for 20 years, provided it is a genuine commitment. We have achieved total military superiority over Iran. Iran’s bridges and power plants are potential targets. In the coming days, I will decide on lifting sanctions on Chinese oil companies buying Iranian oil. If we cannot halt Iran’s nuclear program, we will intervene.”
