Major cryptocurrencies, including Bitcoin, showed limited bullish movement on Monday despite a surge in Asian equities fueled by renewed optimism over U.S.-China trade talks. Bitcoin traded flat-to-negative around $105,650, forming a doji candle—an indicator of market indecision. Data from Blockchain.com indicated a significant slowdown in Bitcoin network activity, with daily on-chain transactions hitting their lowest average in over a year.
Altcoins Lose Ground as Asian Markets Rally on U.S.-China Trade Talk Hopes
Other major digital assets also failed to register significant gains. XRP, despite breaking above a bearish trendline, was down over 1% at $2.24. Its volatility may spike later in the week due to the XRP Ledger’s APEX 2025 conference in Singapore. Dogecoin also slid nearly 2%, hovering around 18 cents after failing to maintain support above its 100-day simple moving average.
In traditional markets, the Hang Seng Index climbed 1.3%, surpassing the 24,000 mark for the first time since March, buoyed by hopes for progress in U.S.-China trade talks set to begin in London. U.S. President Donald Trump expressed optimism, calling the upcoming meetings promising. Other Asian indices, including South Korea’s KOSPI and China’s Shanghai Composite, also gained despite economic headwinds in China.
Deflation Deepens in China as U.S. Inflation Data Poses Global Market Uncertainty
China reported worsening deflation with consumer prices down 0.1% and producer prices falling 3.3% year-over-year in May. Experts, including Robin Brooks from the Brookings Institution, attribute the trend partly to U.S. tariffs, warning that these conditions might push China further into deflation. In response, the Chinese central bank has already cut interest rates and may introduce further stimulus measures, such as reducing reserve requirements, to spur economic activity.
Investors are closely watching the upcoming U.S. consumer price index (CPI) data for May, expected on Wednesday. Economists forecast a slight uptick in inflation, with the core CPI rising to 2.9% annually. A stronger-than-expected CPI report could suggest that Trump-era tariffs are feeding into U.S. inflation, possibly delaying Federal Reserve interest rate cuts and triggering volatility across financial markets, including crypto.
