At the time of writing, Bitcoin 
$72,950 prices are over $105,000 while Ethereum 
$2,246 retakes $2,600. The global financial market is eagerly awaiting announcements, particularly with regards to discussions between Trump and Xi. Although tensions heightened last Friday, Trump has yet to make any substantial moves to ease market concerns. How do these latest developments point toward the future of cryptocurrencies?
Impact of Chinese Economic Data
Currently, Trump is focused on the country’s tax laws, seeking to persuade the Democrats. Meanwhile, negotiations regarding tariffs are being handled by the Treasury and Commerce Ministers. An announcement of an agreement with India is expected soon. On its part, the EU has taken specific steps against China, showcasing its willingness to enter into agreements with the US.
Amidst these developments, China’s Caixin Manufacturing PMI data was released. The PMI fell to 48.3 following a 2.1 drop in May, marking its lowest point since September 2022. The consistent figures below 50 raise concerns about possible contraction. The Kobeissi Letter noted that this survey focuses on small and medium-sized enterprises in the non-state sector. This represents the first monthly contraction since September 2024, highlighting the weakening supply and demand in Chinese manufacturing due to tariffs.
“High tariffs are hitting smaller Chinese exporters hard,” the letter further commented.
In conclusion, an agreement between China and the US is essential. The current tariff rates are unsustainable and damaging to all nations involved. Perhaps a Geneva-like atmosphere between China and the US will emerge soon, enabling Bitcoin to target $120,000 once more.
Bitcoin and Altcoin Movements
At the time of writing, US markets opened with slight gains and Bitcoin’s market dominance seems to be receding from a recent peak. Quinten’s chart suggests the first lower peak might soon be completed. This signals a potential new phase of altcoin growth.
If Bitcoin Dominance (BTCD) descends to 60%, a significant downward break may occur, sparking true bull movements in altcoins.
Jelle, who shared the Bitcoin chart, continues to inspire hope, stating, “The wildest part of the cycle begins when Bitcoin turns this multi-year resistance into support. When it breaks above $120,000 and remains there in the coming weeks, the show will commence.”
