4 min readBitcoin rallied almost 10% last week, reaching a six-month high of 105.7k at the start of this week. The price has eased back slightly and is consolidating around 103k. Meanwhile, the cryptocurrency market capitalization is above $3.45 trillion. ETH is hovering around 2600, and XRP is above 2.50.
Sentiment across the market has improved considerably this week after the US and China de-escalated their trade hostilities following talks in Geneva at the weekend. In a joint statement on Monday, the US agreed to reduce its tariffs on imports from China to 30%, down from 145%, while China said it would lower its retaliatory tariffs to 10%, down from 125%, for a period of 90 days.
Optimism surrounding the thawing trade tensions between the world’s two largest economies boosted cryptocurrencies. The fear and greed index rose to 73, up from 67 last week.
Yesterday, US inflation data added to the improved mood. US CPI was 2.3% YoY in April, down from 2.4% in March. This marked the lowest level since 2021 and the third straight month that inflation came in cooler than expected. The data has eased fears about the impact of trade tariffs, at least for now. It could still take time for the inflationary impact of Trump’s tariffs to feed through to the hard data.
Federal Reserve Chair Jerome Powell is due to speak tomorrow. Investors will watch closely to see whether he has changed his tone following last week’s FOMC meeting in light of the softening US-China trade relations and cooler inflation.
Coinbase joins the S&P 500
The Coinbase share price surged almost 24% yesterday as investors cheered the inclusion of the first crypto exchange into the S&P 500, marking a significant milestone for the company and the industry as a whole.
Coinbase has seen a change of fortunes after being involved in intense litigation with the Securities and Exchange Commission (SEC) just a few months back. The SEC later dropped the case under the Trump regime, and firm is now the newest addition to the S&P 500.
Coinbase joining the S&P 500 not only legitimises the crypto industry but also symbolises its dramatic turnaround, reflecting how far the industry has come and potentially where it’s heading.
With the Trump administration planning to make America the cryptocurrency capital of the world Coinbase is the dominant platform with the 66% U.S. market share making it well positioned to ride the tailwind.
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