Stocks, treasuries, gold, oil, and Bitcoin in motion: The jobs and policy effect

Stocks, treasuries, gold, oil, and Bitcoin in motion: The jobs and policy effect

At the heart of this storm is the latest US employment report, which has once again defied expectations, alongside the final approval of President Trump’s US$3.4 trillion tax and spending package. These events have sent ripples across asset classes, influencing everything from stock indices and Treasury yields to the US dollar, gold, oil, and even Bitcoin.

I want to share my perspective on their implications and interconnections, while grounding the discussion in the facts and data provided. My aim is to paint a clear picture of the current market landscape, delving into both the opportunities and risks that lie ahead.

The US employment report: Strength with subtle cracks

The US employment report for June has been a focal point for markets, delivering a headline number that suggests continued economic vigour. Nonfarm payrolls, which track the number of jobs added or lost outside the agricultural sector, rose by 147,000, well above the consensus estimate of 106,000. This marks the fourth consecutive month that the labour market has surprised to the upside, reinforcing the narrative of a resilient US economy.

A strong payroll figure typically signals that businesses are confident enough to expand their workforce, a sign of robust demand and economic health. Paired with this, the unemployment rate, a measure of the percentage of the labour force actively seeking work, eased unexpectedly to 4.1 per cent, better than the anticipated 4.3 per cent. This drop suggests a tightening labor market, which could pave the way for wage growth and bolster consumer spending, both critical drivers of economic activity.

However, the report isn’t without its nuances. Beneath these rosy headlines lies a softening in private activity growth, a detail that tempers the optimism. This softening could indicate that, while headline job creation remains strong, specific sectors —perhaps those tied to private investment or discretionary spending —are losing momentum.

From my perspective, this duality in the data is a reminder that economic strength isn’t uniform. The labor market’s resilience is encouraging, but the cracks in private activity suggest that policymakers and investors should remain vigilant. If this softening persists, it could signal broader challenges ahead, especially as the Federal Reserve weighs its next moves on interest rates.

Broader economic indicators: Signs of resilience

Beyond the employment report, other economic indicators suggest that the economy is holding its ground. Initial jobless claims, which count new filings for unemployment benefits, declined in the latest data, as did continuing claims, which track those receiving ongoing support. These reductions imply that job losses are slowing and that unemployed workers are finding new roles more quickly, both positive signs for labor market stability.

Additionally, the ISM Services index, a key gauge of activity in the services sector (which dominates the US economy), returned to expansion territory. A reading above 50 indicates growth, and this rebound suggests that the services sector is shrugging off any prior weakness, contributing to overall economic momentum.

These indicators bolster the case for cautious optimism. The decline in jobless claims aligns with the strong payrolls data, while the ISM Services rebound hints at broad-based resilience. However, I’d caution that these metrics are snapshots, backward-looking by nature, and don’t fully account for future uncertainties, such as the impact of new fiscal policies or global headwinds.

Still, for now, they reinforce the narrative of a US economy that’s weathering challenges better than many had feared.

President Trump’s tax and spending package: A double-edged sword

Shifting to the political arena, President Trump’s US$3.4 trillion tax and spending package has cleared a significant hurdle, passing the House with a razor-thin 218-214 vote. This landmark legislation blends tax cuts with significant spending increases, aiming to juice economic growth while addressing infrastructure and social priorities.

The tax reductions could put more money in the pockets of consumers and businesses, potentially spurring spending and investment. At the same time, the spending component promises to inject capital into the economy, supporting jobs and public projects.

The package’s passage is a double-edged sword. It’s a win for growth-oriented policies, likely contributing to the upbeat mood in equity markets. On the other hand, its hefty price tag raises red flags about the federal deficit, which is already substantial. Critics argue that this could fuel inflation in the long run, forcing the Federal Reserve to tighten monetary policy more aggressively.

The narrow vote margin underscores the contentious nature of this move—it’s a bold bet on growth, but one that hinges on execution and favorable economic conditions aligning. If successful, it could amplify the current economic momentum; if not, it risks exacerbating fiscal imbalances at a time when resilience is already being tested.

Stock markets: Riding the wave of optimism

The stock market has greeted these developments with open arms. The S&P 500 rose by 0.83 per cent, the NASDAQ climbed 0.99 per cent, and the Dow Jones gained 0.81 per cent. These gains reflect a wave of optimism, likely fuelled by the strong jobs data and the fiscal stimulus promised by Trump’s package.

Investors seem to be betting on higher corporate earnings and consumer demand, both of which could flow from these catalysts. However, early trading signals from Asian equity indices and US futures suggest a potential pullback, hinting at profit-taking or lingering doubts about the sustainability of the rally.

The rally is justified given the data, but it comes with risks. Stocks are sensitive to interest rate expectations, and as we’ll see with Treasury yields, the market is pricing in a shift. If rates rise too quickly, or if global risk sentiment sours, these gains could unwind. For now, though, the upward movement reflects a market eager to embrace good news—a classic case of sentiment driving prices, at least in the short term.

Treasury yields: The bear-flattening signal

The US Treasury yield curve offers a more sobering perspective, undergoing a sharp bear flattening. This phenomenon occurs when short-term yields rise faster than long-term ones, narrowing the gap between them. The two-year Treasury yield jumped 9.5 basis points to 3.880 per cent, while the 10-year yield rose 6.9 basis points to 4.346 per cent.

This shift is tied to the strong jobs report, which has recalibrated expectations for Federal Reserve rate cuts. Investors now anticipate a tighter policy stance to curb potential inflation, pushing short-term yields higher as bond prices fall.

A flatter yield curve can signal mixed messages. Historically, an inverted curve (where short-term yields exceed long-term ones) has foreshadowed recessions, but we’re not there yet. Instead, this bear flattening suggests confidence in near-term growth, hence the rise in yields, but tempered expectations for the longer haul.

I view this as a natural market adjustment to the data. It serves as a reminder that borrowing costs are creeping up, which could eventually weigh on growth-sensitive sectors such as housing or corporate investment.

US dollar and gold: A tale of strength and retreat

The US Dollar Index, which tracks the dollar against a basket of major currencies, rose 0.4 per cent after the jobs report. A stronger dollar often follows robust economic data, as it boosts demand for dollar-denominated assets and signals tighter policy ahead. This strength, however, pressured gold, which slid 0.9 per cent to US$3,326 per ounce. Gold thrives in times of uncertainty or low interest rates, but with yields rising and the dollar strengthening, its appeal as a haven is diminishing.

I view the dollar’s recovery as a logical outcome of the data, though its export-dampening effects could pose challenges. Gold’s decline, meanwhile, doesn’t surprise me. It’s a classic reaction to this environment. That said, if geopolitical risks or inflation fears resurface, gold could regain its lustre quickly.

Brent crude: Balancing supply and demand

Brent crude oil slipped 0.4 per cent to US$69 per barrel, even as OPEC+ prepares to add 411,000 barrels per day in August. This drop likely reflects concerns about demand, possibly tied to global growth uncertainties, outweighing the supply increase for now.

The direction of oil prices will hinge on how demand holds up, especially in key markets like China, and whether OPEC+ adheres to its plan. The modest decline suggests a market in wait-and-see mode, which feels prudent given the mixed signals elsewhere.

Bitcoin: Volatility meets technical headwinds

Bitcoin’s journey has been a rollercoaster, rallying to US$110,500 before hitting resistance at US$110,000. Trading above US$109,000, it’s showing stability, but technical analysis reveals bearish divergences across multiple timeframes—15-minute, one-hour, four-hour, and daily charts.

These divergences, where price rises but momentum indicators like the RSI weaken, suggest a fading bullish momentum and a possible pullback to US$106,000-US$107,500. Despite this, long-term trends remain bullish, buoyed by US$603 million in net inflows into US spot Bitcoin ETFs, with Fidelity’s FBTC leading at US$237.13 million.

Bitcoin is cautiously mixed. The ETF inflows signal strong institutional interest, a bullish undercurrent. Yet, the technical warnings can’t be ignored. US$110,000 feels like a psychological ceiling that needs more conviction to break. Traders betting on US$112,000 might be right eventually, but the selling pressure suggests traps in the near term. I’d watch those support levels closely.

Wrapping up

The global financial markets are at a fascinating juncture. The US economy’s resilience, underscored by jobs data and fiscal policy, is driving risk sentiment forward, yet subtle cracks and technical signals urge caution.

Stocks and the dollar are riding high, but yields, gold, oil, and Bitcoin reflect a more complex reality. In my view, the interplay of these factors points to opportunity tempered by vigilance. Growth is here, but its sustainability depends on how these pieces evolve. For investors, staying informed and nimble will be key in navigating what’s next.

 

Source: https://e27.co/stocks-treasuries-gold-oil-and-bitcoin-in-motion-the-jobs-and-policy-effect-20250704/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Hope or hype? Trump’s ceasefire claim and the future of gold, oil and Bitcoin

Hope or hype? Trump’s ceasefire claim and the future of gold, oil and Bitcoin

US President Donald Trump’s recent announcement of a ceasefire between Israel and Iran, a development that has injected a dose of optimism into markets worldwide. I find this situation fascinating, not just for its immediate market implications, but for the broader questions it raises about stability, investor sentiment, and the evolving role of cryptocurrencies in times of uncertainty.

The ceasefire announcement: A fragile hope

President Trump took to Truth Social to declare that Israel and Iran had agreed to a “complete and total ceasefire,” set to take effect within approximately six hours of his post, following the completion of their ongoing military operations. “CONGRATULATIONS TO EVERYONE!” he wrote, suggesting that after a 12-hour pause, the war would be considered “ENDED!”

The announcement came after days of intense conflict, including US forces bombing Iranian nuclear sites late Saturday, which had sent shockwaves through global markets over the weekend. If true, this ceasefire could mark a turning point in the Middle East, potentially easing tensions that have kept investors on edge.

The optimism sparked by Trump’s words is tempered by significant uncertainty. Neither Israel nor Iran has publicly confirmed their acceptance of this ceasefire timeline, a silence that casts doubt on its legitimacy. Even more concerning, Iran retaliated against the US on Monday with missile strikes on American military bases in Qatar and Iraq. This action suggests that, far from winding down, tensions remain very much alive.

From my perspective, this lack of confirmation and the retaliatory strikes are red flags. Trump’s announcement may reflect his administration’s aspirations or perhaps a diplomatic push, but without buy-in from the key players, it’s premature to call this a done deal. Markets, however, didn’t wait for confirmation to react, and that’s where the story gets interesting.

Market reactions: A surge of optimism

The financial markets wasted no time in responding to the ceasefire news. On Monday, US stock indices closed higher, with the Dow Jones Industrial Average climbing 0.89 per cent, the S&P 500 gaining 0.96 per cent, and the Nasdaq Composite rising 0.94 per cent. This rally suggests that investors were eager to shake off the escalating tensions in the Middle East and embrace the possibility of de-escalation.

Asian equities followed suit, opening higher on Tuesday, and US equity index futures pointed to further gains at the opening bell. Meanwhile, Brent crude oil prices dropped sharply by 7.18 per cent to settle at US$71.48 per barrel, reflecting reduced fears of supply disruptions in the oil-rich region.

Safe-haven assets told a slightly different story. Gold prices edged up by 0.5 per cent to US$3,384.59 per ounce, indicating that some investors remain cautious despite the ceasefire news. US Treasury yields, another barometer of risk sentiment, extended their losses, with the 10-year yield falling about 4 basis points to 4.33 per cent and the two-year yield dropping roughly six basis points to 3.84 per cent.

The US Dollar Index also weakened, declining 0.29 per cent to 98.42. These movements suggest a mixed sentiment: while equity markets leaned into the optimism, bond and currency traders hedged their bets, perhaps wary of the ceasefire’s uncertain foundation.

As someone who’s watched markets ebb and flow with geopolitical headlines, I see this reaction as a classic case of hope driving momentum, tempered by a healthy dose of skepticism. The equity gains and oil price drop align with the idea that a ceasefire could stabilise the region, but the uptick in gold and decline in yields hint at lingering doubts. If the ceasefire holds, we could see this optimism solidify; if it falters, those safe-haven trades might intensify.

The crypto angle: Bitcoin’s wild ride

Nowhere was the market’s reaction more dramatic than in the cryptocurrency space. Bitcoin, the leading digital asset, surged five per cent on Monday evening following Trump’s announcement, climbing to US$105,550 according to CoinGecko data. This spike nearly erased a weekend decline that saw Bitcoin fall below US$100,000 after the US bombing of Iranian nuclear sites.

By the end of the weekend, it had started to recover, crossing back above US$100,000, but the ceasefire news turbocharged that rebound. At US$105,000, Bitcoin is within striking distance of its Friday levels, showcasing its sensitivity to geopolitical developments.

This volatility fascinates me. Crypto markets often amplify the emotional swings of traditional markets, and this is evident here in full force. The weekend drop reflected fear and uncertainty as conflict escalated; the Monday surge mirrored the hope of de-escalation.

However, given the ceasefire’s shaky footing—Iran’s missile strikes occurred after Trump’s tweet—I wouldn’t be surprised if Bitcoin’s price swings again. Crypto’s reputation for volatility isn’t undeserved, and in a situation this fluid, it’s a high-stakes bet for investors. That said, the broader trend of institutional interest in Bitcoin, exemplified by moves like ProCap BTC’s, suggests that some see it as more than just a speculative play. Let’s explore that next.

ProCap BTC: A bold bet on Bitcoin

Amid this geopolitical turbulence, Anthony Pompliano’s ProCap BTC has made headlines with its plan to go public via a merger with Columbus Circle Capital. The new entity has already raised US$750 million from investors, aiming to build a Bitcoin treasury worth up to US$1 billion.

This is a significant move, signalling strong confidence in Bitcoin’s long-term value as a store of value and a hedge against uncertainty. Adding to the momentum, Strategy, another player in the space, announced it had bolstered its treasury with 245 BTC, valued at US$26 million.

Pompliano, a well-known crypto advocate, is doubling down on Bitcoin at a time when traditional markets are grappling with geopolitical risks and economic shifts. Raising US$750 million to stockpile Bitcoin isn’t just a financial play. It’s a statement about where he sees the future of money heading. The fact that Strategy is also adding to its holdings reinforces this trend: institutional adoption of Bitcoin is growing, even as prices gyrate with the news cycle.

For me, this raises a question: are these firms betting on Bitcoin’s resilience regardless of the ceasefire’s outcome, or do they see stability in the Middle East as a catalyst for broader crypto adoption? Either way, it’s a bold move that could pay off handsomely or expose them to significant risk if the market turns.

The Fed’s role: Adding another layer

No analysis of market dynamics would be complete without considering the Federal Reserve. On Monday, Fed Vice Chair for Supervision Michelle Bowman, speaking at the 2025 International Journal of Central Banking Conference, hinted at a possible interest rate cut at the next policy meeting in July, contingent on inflation remaining subdued.

Fed Chair Jerome Powell is also set to testify before the House Committee on Financial Services, presenting “The Federal Reserve’s Semi-Annual Monetary Policy Report.” His remarks could shed more light on the Fed’s thinking, especially in the context of these geopolitical developments.

Bowman’s comments caught my attention because they suggest the Fed is keeping its options open. Lower interest rates could boost riskier assets, such as stocks and cryptocurrencies, by reducing the appeal of yield-bearing investments like bonds. Bitcoin, often compared to gold as a non-yielding asset, could benefit particularly if rates drop.

But the Fed’s calculus isn’t isolated from the Middle East situation. If the ceasefire collapses and oil prices spike, inflation could resurface, forcing the Fed to reconsider its stance. For now, the prospect of a rate cut adds a tailwind to the market’s optimism, but it’s a wildcard that depends on how events unfold.

My take: Optimism with eyes wide open

So, where do I land on all this? I’m cautiously optimistic but acutely aware of the risks. Trump’s ceasefire announcement has undeniably lifted global risk sentiment, and the market’s response—rising stocks, falling oil prices, and a surge in Bitcoin reflects a collective sigh of relief.

The idea that the worst of the Middle East conflict might be behind us is appealing, and if the ceasefire sticks, it could pave the way for a more stable economic environment. Lower tensions could ease supply chain pressures, keep inflation in check, and give the Fed room to cut rates, all of which would be bullish for markets.

But I can’t ignore the cracks in this narrative. Iran’s missile strikes and the silence from both Israel and Iran make me skeptical that this conflict is truly over. Geopolitical resolutions are rarely this tidy, and the Middle East has a way of defying expectations. If the ceasefire unravels, we could see a swift reversal—oil prices jumping, equities tumbling, and Bitcoin caught in the crossfire. The safe-haven demand for gold and Treasuries hints that I’m not alone in this concern.

For crypto specifically, I’m intrigued by the resilience on display. Bitcoin’s quick recovery and ProCap BTC’s ambitious plans suggest that the asset class is maturing, attracting players who view it as a long-term investment rather than a short-term gamble. Yet, its volatility reminds us that it’s still a young market, prone to overreacting to headlines. I admire Pompliano’s conviction, but I’d be nervous about such a heavy Bitcoin allocation until the dust settles in the Middle East.

Looking ahead: A critical juncture

The next few days will be pivotal. If Israel and Iran signal their commitment to the ceasefire—perhaps through a pause in hostilities or official statements—the market’s optimism could solidify, potentially driving further gains. Conversely, any escalation, like additional Iranian strikes or Israeli counterattacks, could unravel the progress we’ve seen.

Beyond the immediate geopolitics, Powell’s testimony and the Fed’s broader outlook will shape expectations, while ProCap BTC’s public debut will test the crypto market’s appetite for institutional-scale investment.

The ceasefire could serve as a stepping stone to stability, boosting global markets and solidifying crypto’s place in the financial ecosystem. Or it could be a false dawn, exposing investors to another wave of volatility. For now, the data points to hope—but history teaches us to keep our eyes open.

 

Source: https://e27.co/hope-or-hype-trumps-ceasefire-claim-and-the-future-of-gold-oil-and-bitcoin-20250624/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Gold up, oil down, Bitcoin flexes: What should we expect next?

Gold up, oil down, Bitcoin flexes: What should we expect next?

Global risk sentiment, which often serves as a barometer for investor confidence, has been notably muted. On Monday, US stock markets took a hit, breaking a multi-session winning streak that had given some hope of sustained optimism.

The Dow Jones Industrial Average slipped by 0.24 per cent, the S&P 500 dropped 0.64 per cent, and the Nasdaq fell 0.74 per cent, all closing in the red. This downturn came despite encouraging data showing stronger-than-anticipated US services activity and reassuring words from US Treasury Secretary Scott Bessant about forthcoming trade deals.

It’s a puzzling scenario—positive economic signals clashing with a market that seems reluctant to embrace them. To me, this suggests that investors might be wrestling with deeper uncertainties, perhaps questioning whether these bright spots can hold up against broader economic or geopolitical headwinds.

Diving into the bond market, US Treasury yields painted a different picture, trending upward across the curve, though the pace of increase slowed compared to the previous Friday’s surge. The 10-year US Treasury yield rose by 3.5 basis points to settle at 4.343 per cent, while the 2-year yield nudged up by 0.8 basis points to 3.832 per cent.

Rising yields often reflect a shift in investor behaviour—selling off bonds, possibly in anticipation of higher inflation or interest rates down the road. Given the positive services data, one might expect this to signal confidence in economic growth. But the disconnect with the stock market’s decline is striking.

It’s as if the bond market sees a robust future that equity investors aren’t yet buying into. Could this be a sign of skepticism about the longevity of the recovery, or are there other forces—like lingering trade tensions or Federal Reserve policy expectations—clouding the picture? I suspect it’s a bit of both, with markets caught in a tug-of-war between optimism and caution.

Meanwhile, the US Dollar Index (DXY) took a modest dip, falling 0.20 per cent and weakening against most G10 currencies. This softening of the dollar caught my attention, especially when paired with the dramatic strengthening of the Taiwanese Dollar (TWD). The USD/TWD pair tumbled from 31.0 to 30.10, even hitting an intra-day low of around 29.60.

This wasn’t just a random fluctuation—market chatter points to speculation that Taiwan might be allowing its currency to appreciate as part of a trade deal with the US. If true, this could be a strategic move to bolster economic ties, but it also highlights how sensitive currency markets are to geopolitical rumours and policy shifts.

The dollar’s broader weakness might tie back to the Federal Reserve’s stance or the market’s reaction to trade uncertainties, though I’d need to dig deeper into recent Fed statements to pin that down. For now, it’s a reminder that forex markets are rarely quiet when global stakes are high.

Turning to commodities, the story gets even more intriguing. Gold prices jumped 2.9 per cent, a move I see as a classic flight to safety amid a weaker dollar and persistent trade uncertainty. Investors often flock to gold when confidence wavers, and this uptick fits that pattern. On the flip side, Brent crude oil slid 1.7 per cent, continuing its downward trend after OPEC+ agreed over the weekend to ramp up output. The contrast here is stark—gold shining as a safe haven while oil stumbles under supply pressures.

It’s a dynamic that underscores the uneven currents running through the commodity space, with macroeconomic signals and sector-specific decisions pulling in different directions. Asian equity indices mirrored this uncertainty with mixed results in early trading, and US equity index futures hint at a lower opening for US stocks, suggesting that Monday’s cautious mood isn’t dissipating anytime soon.

Now, let’s shift gears to the cryptocurrency market, where things get particularly fascinating. Bitcoin has been a standout performer, even as traditional markets faltered. According to recent insights from VanEck, Bitcoin posted a 13 per cent gain in April, a sharp contrast to the broader market selloff.

This resilience was especially evident during the week ending April 6, when former President Trump’s announcement of new tariff measures sent shockwaves through global markets. While equities and gold took a hit, Bitcoin climbed from US$81,500 to over US$84,500 by week’s end.

For a moment, it looked like Bitcoin might be breaking free from its usual dance with US equities—a phenomenon analysts call decoupling. The 30-day moving average correlation between Bitcoin and the S&P 500 dipped below 0.25 in early April, fueling hopes that it could carve out a path as an independent asset, perhaps even a hedge against global instability.

But that independence didn’t stick. By the end of April, the correlation rebounded to around 0.55, and Bitcoin fell back into step with equity markets. Still, its 13 per cent gain outpaced the Nasdaq Composite’s one per cent decline and the S&P 500’s modest uptick, marking it as a relative winner.

Also Read:

Market wrap: Consumer confidence drops, markets rise, Bitcoin ETF soars

Market wrap: Consumer confidence drops, markets rise, Bitcoin ETF soars

What’s driving this? Part of it might be institutional moves like Strategy’s—formerly MicroStrategy—recent acquisition of 1,895 Bitcoin for US$180 million, wrapping up a US$21 billion equity offering program launched in October. With their holdings now at roughly 555,500 Bitcoin, valued at US$52.4 billion per their latest SEC filing, Strategy’s commitment signals strong corporate faith in Bitcoin’s long-term value.

This kind of institutional backing could be stabilising Bitcoin’s floor, even as its correlation with stocks waxes and wanes. To me, it’s a sign that Bitcoin is maturing—its volatility has reportedly hit a 563-day low, per CoinTelegraph—yet it’s still searching for its identity in the financial ecosystem.

Ethereum, however, tells a different story, one tinged with struggle. Its dominance in smart contract fees has taken a significant hit as users drift to rival networks, likely drawn by lower costs and faster transactions. This migration isn’t just a blip—it’s a challenge to Ethereum’s core promise as the backbone of decentralised applications. Vitalik Buterin, Ethereum’s co-founder, has openly acknowledged the network’s past fixation on complexity, admitting that adjustments are overdue.

His comments hint at a “slimming down” effort, a tacit concession that the grand vision of Ethereum as a “world computer” might be more aspirational than practical. There’s talk of swapping out the Ethereum Virtual Machine (EVM) for RISC-V, which some see as a technical upgrade but others—like me—view as an admission that the layer2 Rollup-Centric strategy has faltered.

While competitors like Solana scoop up users with simpler designs and flashy marketing (think MEME coins), Ethereum is bogged down managing a sprawling web of layer2 solutions. Interoperability among hundreds of L2s sounds ambitious, but in practice, it’s a headache—one that’s driving developers and users away. Buterin’s pivot feels less like a bold reimagining and more like a desperate bid to keep Ethereum relevant.

I can’t help but wonder if this is a case of cutting losses rather than charting a new course. Solana’s gains highlight what Ethereum’s losing: agility and accessibility. Still, Ethereum’s entrenched community and developer base give it a fighting chance—if it can streamline without alienating its core.

Stepping back, the market wrap reveals a world in flux. Global risk sentiment is tepid, with US stocks faltering despite economic green shoots.

Treasury yields are climbing, hinting at growth expectations, yet the dollar’s dip and the TWD’s surge point to trade-driven undercurrents. Commodities split the difference—gold up, oil down—while Bitcoin flexes its muscle but can’t quite break free from equities. Ethereum, meanwhile, grapples with an identity crisis that could reshape its future.

I see this as a moment of reckoning for markets: optimism is there, but it’s fragile, tempered by uncertainties that no trade deal or data point can fully dispel. Investors would do well to watch these threads closely—because in this environment, the next twist is never far off.

 

Source: https://e27.co/gold-up-oil-down-bitcoin-flexes-what-should-we-expect-next-20250506/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j