The major cryptocurrencies struggle as Hang Seng Cheers US-China trade talk; The US eye increases as China’s deflection worsens
The major cryptocurrencies have shown a little bullish momentum Monday, even though the hope for US-China trade talks has raised Asian stocks.
Bitcoin
.
Data from Blockchain.com shown A marked slowdown in network activity, with a seven-day moving average of daily chain transactions falling to 315.48k, the lowest for at least one year.
Cryptocurrency XRP payments have been struggling to gather reversed traction despite topping a bearish trendline from mid-May Highs. Cryptocurrency changed hands to $ 2.24 at the time of press, down by more than 1% during the day (UTC). Volatility can rise this week as the XRP Ledger 2025 conference conference begins in Singapore.
The cryptocurrency dog meme exchanged almost 2% lower, closed to 18 cents, which failed to establish a foothold above the 100-day simple moving average (SMA) over the weekend.
Hang seng tops 24k
Hong Kong’s Hang Seng Index rose 1.3%, leading the 24,000 marks for the first time from March 24, according to Data Source TradingView. The move came in response to optimization about US-China trade talks this week.
“Optimism has been as high as the Trump election as the leading trade representatives will meet in London starting Monday. There are indications that the conversations will go throughout the week and Trump himself is optimistic,” forexlive’s analyst Adam Button BUTTON Says In a blog post.
“The meeting must have gone well,” President Donald Trump told Truth Social Friday, announcing the new circulation of trade talks in London.
Other Asian indices, such as South Korea’s Kospi and China’s Shanghai composite, have also acquired land despite the deepening of the factory and factory gate in China.
China’s deflection has worsened
China’s consumer prices fell 0.1% year-year in May, according to data from the National Bureau of Statistics released Monday. The CPI first became negative in February.
Meanwhile, the producer price index, or factory gate prices, dropped 3.3% year-year in May, registered a deeper decline than expected 3.2% drop analyst. The factory factory prices have been deflection since October 2022.
According to Robin Brooks, senior fellow at the Global Economy and Development Program at the Brookings Institution, US tariffs form a deflationary shock for major exporters such as China.
“China’s manufacturer’s price inflation for consumer goods has been its lowest level since the 2008 crisis. US tariffs are now pushing China throughout the deflection. All the necessary conditions for deflection are there: poor consumption and a debt overhang. US tariffs are now catalyst …,” Brooks told Brooks at X.
Worsening deflection can prompt China to stimulate domestic demand with further ingrained liquidity.
China’s central bank in May Cut out the major interest rates By 10 basis points to a historical low while reducing the ratio of the reserve requirement, release of liquidity into the market. Last week, the State-Run China Securities Journal reported already The People’s Bank of China can lower the ratio of the reserve requirement later this year to support growth and restart government bond trade.
Many more Chinese stimulus can be well -versed for financial markets, including cryptocurrencies.
Focus on the US CPI
The US consumer price index for May since Wednesday will be reviewed by markets for hints that Trump’s tariffs are increasing in economic price pressures.
The CPI headline is seen to match April’s 0.2% month-to-month growth speed, which equates to an annual increase of 2.5% increase of 2.3% increase in April, according to the FXSTRETEIVE. Meashile, the main inflation, which does not include Pabagu -change of food and energy components, is expected to be ticked by 2.9% in May from 2.8% in April.
Economists in Barclays expect Data to show the first signs of price increases related to tariffs on a wide range of basic goods.
A warmer-than-anticipated printing can dent rates on rates, which potentially inject volatility into financial markets.
