Today’s decline in Bitcoin 
$64,038 value back to $113,000 was anticipated with the release of recent PMI data. Cryptocurrency enthusiasts were hopeful that the promising negotiations between Russia and other key players could turn into a catalyst for Bitcoin’s rise. However, familiar sources reveal that Trump has stepped back from the discussions.
The Russia-Ukraine Conflict
Some sources within the Trump administration suggest that Trump has stepped back in his involvement in ongoing negotiations aimed at ending Russia’s invasion of Ukraine. This step sets the stage for the next phase, where a potential meeting between the Russian and Ukrainian leaders could take place. It remains uncertain whether Putin and Zelensky will meet as Trump envisions.
During an interview with talk show host Mark Levin on Tuesday, Trump mentioned that it might be better for the two leaders to meet without him.
“I just want to see what will happen in the meeting. They are currently arranging it, and we’ll see what happens.”
Despite claiming during last year’s election campaign that he would facilitate this meeting within 24 hours, things haven’t gone as planned for Trump. His current approach to the Putin-Zelensky meeting is more of a “wait and see” policy. Meanwhile, White House officials admit there’s an effort underway but refrain from providing details.
“Trump and his national security team continue their contacts for a bilateral meeting with Russian and Ukrainian officials to halt the deaths and end the war… It is not in the national interest to further discuss these matters publicly.”
The recent $100 billion arms deal indicates that Trump is focused on his country’s interests. Extending the process isn’t a significant issue for the U.S., though it burdens the EU. To ensure the EU continues its payments, Trump needs to either fight or appear to fight. Hence, the threats of secondary sanctions and the recent Alaska meeting.
Why Are Cryptocurrencies Dip?
Following recent PPI and employment figures, many are curious about the Fed members’ stance against interest rate cuts. As detailed in the previous report, Hammack asserted that a rate cut in September is unlikely, with unemployment at acceptable levels and increasing inflation risks.
Tomorrow, Powell is expected to echo similar sentiments. When combined with the Fed minutes revealing that most members see inflation risks as prevailing, it confirms that we may not see two total cuts by year-end.
The negotiations between Trump and Putin, threatened by Trump’s secondary tariff, have progressed sluggishly, souring optimism. Coupled with the acceleration of ETF outflows from rate negativity and similar-toned impending announcements creates an unavoidable downturn. Even a seemingly minor detail like Trump’s smear campaign against Cook after Powell is distressing.
