Last week (May 27 - June 2), BTC experienced four consecutive declines before stabilizing, influenced by the BTC 2025 Conference. Since the conference opened in Las Vegas on May 27, BTC briefly surged to $110,718, then turned downward, reaching a low of $103,068.55 at 11:00 on May 31, with a weekly decline of 6.9%. Subsequently, BTC moderately rebounded, returning above $104,000, with trading volume slightly expanding, currently stabilizing around $105,184.
ETH during the same period showed a typical "M" pattern. During the conference, it touched highs twice, reaching $2,788 on May 29, then weakened and broke below $2,500, dropping to a low of $2,468.56, with a maximum volatility of 11.45%. Currently, ETH is steadily recovering to around $2,613 (Binance spot, June 3 18:00).
U.S. stocks regained momentum with tariff relief, with Nasdaq rising nearly 1% in May and S&P 500 rising over 6%, creating the best monthly performance since November 2023. On June 2 closing, Dow rose 0.08%, S&P rose 0.41%, and Nasdaq rose 0.67%.
Market Interpretation
BTC Spot ETF Outflows Expand, ETH Spot ETF Attracts Funds Against the Trend
Last week, U.S. BTC spot ETF saw net outflows of $144 million, with ARKB, FBTC, and GBTC as primary withdrawal channels. In contrast, ETH spot ETF saw net inflows of $285 million, with BlackRock's ETHA accounting for over 70%.
On the regulatory front, SEC questioned the compliance of REX's proposed ETH and SOL staking ETFs, and WisdomTree's XRP ETF entered review. Derivatives market sentiment turned cautious, with IBIT call option positions decreasing and short-term wait-and-see atmosphere intensifying.
Japan's Government Bond Yields Hit New High, BTC Emerges as New Safe-Haven Option
In May, Japan's 40-year government bond yield soared to 3.5%, a historic high, highlighting sovereign credit concerns. During the same period, BTC broke through $112,000 to a new high, with safe-haven funds accelerating into the crypto market. As bond auction demand plummeted and the system was under pressure, BTC, with its fixed supply and decentralized attributes, was viewed by some institutions as a "new type of government bond". U.S. BTC ETF saw single-day inflows exceeding $900 million, with signals from the Czech Central Bank and Trump administration about potential inclusion in reserves, further elevating BTC's status.
U.S. High-Level Officials Signal Crypto Regulation Relaxation, Spot ETF Trading Volume Explodes
At the BTC 2025 Conference, U.S. Vice President J.D. Vance proposed a national strategic position for crypto assets, promising simplified regulation, ETF legalization support, and reduced industry enforcement barriers. Following the statement, BTC spot ETF trading volume hit a year-to-date high, reflecting market's quick pricing of policy benefits. Subsequent regulatory details and policy implementation pace are expected to be key market variables.
Korean Election Sparks Crypto Structural Adjustment Expectations
With the Korean election approaching on June 3, as the world's third-largest crypto market with daily trading exceeding $5.4 billion and nearly 10 million active users, potential tax reforms could suppress local trading volume. Previous examples show India and Indonesia experienced over 60% trading volume drops post-high taxation. Major candidates unanimously support BTC spot ETF, increasing short-term advancement probability, though institutional differences in stablecoins and banking cooperation remain. Projects are advised to closely monitor the new government's policy direction and dynamically adjust strategies.
Geopolitical Changes Intensify, Mainstream and Altcoins Face Pressure and Adjustment
The U.S. International Trade Court partially revoked tariff rulings, enhancing market sensitivity to geopolitical and policy risks. XRP and TON, dominated by macro risk aversion, both dropped over 6% on May 30, with XRP breaking below $2.14 support, causing nearly $30 million in long liquidations. Despite Ripple launching a new cross-border payment report and increasing practical applications, short-term fluctuations remain macro-driven, with XRP currently range-bound and consolidating at lower levels.
Market Highlights
High-Leverage On-Chain Liquidations Become Public Opinion Hotspot, Derivatives Mechanism Sparks Controversy
During the Dragon Boat Festival, on-chain trader James Wynn's consecutive high-leverage BTC long position liquidations drew significant attention. His 40x leverage position, real-time liquidation price disclosure, and community crowdfunding generated high interest on the Hyperliquid platform. The platform's on-chain fund flow and account interactions remain transparent, with community opinion focusing on "scripted" operations and marketing attributes. Simultaneously, Binance founder CZ discussed "dark pool perp DEX" models, believing on-chain transparency disadvantages high-leverage players, with market interest in decentralized derivatives trading continuously rising.
Trump Media Group Builds BTC Position, Potentially Becoming Largest BTC-Holding U.S. Stock Company
Trump Media Group completed $2.44 billion financing, planning to use $2.32 billion to purchase BTC. If executed, the company would surpass MicroStrategy as the largest BTC-holding listed enterprise in U.S. stocks, with BTC holdings accelerating penetration into mainstream financial reporting systems.
PSG Increases BTC Reserves, Sports Capital Collectively Embraces Crypto
Paris Saint-Germain (PSG) club announced incorporating BTC into financial reserves in 2024, with its innovation division PSG Labs also advancing crypto investments and project incubation. The club's BTC strategy aims to connect with 550 million global young fans, indicating a rising trend of non-financial entities allocating digital assets, with sports capital fully embracing the crypto track.
UK Advances Stablecoin Regulatory Framework, Expected Implementation by 2026
UK FCA released stablecoin and custody regulatory draft in early June, proposing full high-liquidity asset backing, mandatory par value redemption, custodian responsibilities, and other core requirements. Currently in public consultation, implementation is planned for 2026. Regulatory pathways and flexibility will impact future compliant project layouts and market assessments.
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