On the first trading day of the week, global markets displayed mixed signals. The leading cryptocurrency Bitcoin 
$77,420 traded steadily around $105,650, while optimism surrounding U.S.-China trade talks bolstered Asian stock markets. The doji candlestick pattern from Sunday highlighted the indecision among crypto investors. The seven-day average of on-chain transactions approached its lowest levels in a year, indicating weak trading volumes. Meanwhile, in Hong Kong, the Hang Seng index increased by 1.3%, climbing past 24,000 points for the first time since March, as risk appetite rebounded across Asia.
Slow Start for Bitcoin and Altcoins
Following Sunday’s short candlestick, Bitcoin traded in a narrow range around $105,650. According to data from Blockchain.com, on-chain activity hovered near a yearly low, making it challenging for the price to gain upward momentum. Even some miners included transactions with fees as low as 0.1 sat/vB in their blocks.
XRP, which had surpassed the downtrend line that began in mid-May, fell back to the $2.24 level, losing over 1% in value. The APEX 2025 conference week in Singapore could maintain high volatility. Meanwhile, DOGE dipped below the 100-day average, declining to $0.18, reinforcing indecisiveness with weakening trading volumes.
Optimism from Trade Talks Boosts Asian Stocks
The Hang Seng index rose by 1.3%, surpassing 24,000 points. The KOSPI and Shanghai Composite also closed positively. The rally gained momentum amid expectations that high-level trade delegations meeting in London will discuss tariffs.
Adam Button, an analyst at ForexLive, reported that optimism in the markets had reached its highest level since Trump’s election victory. U.S. President Donald Trump’s comments that the talks would go “very well” supported the improved risk appetite in Asia.
Inflation Concerns and Global Central Bank Actions
In China, consumer prices fell by 0.1% annually in May, fueling deflation concerns, while producer prices declined by 3.3%, continuing the longest downward streak since 2008. Robin Brooks from the Brookings Institution highlighted that U.S. tariffs had subjected China to intense price pressures.
The People’s Bank of China cut key interest rates by 10 basis points in May and signaled a move towards easing required reserves, hinting at further liquidity measures. Markets are now watching the U.S. CPI data to be released on June 12. The expected headline increase of 2.5% could dampen expectations of a Fed rate cut.
