This past week delivered major shifts across cryptocurrency markets and international relations. From massive institutional Bitcoin purchases to escalating US-China tensions, here’s what shaped the global financial landscape.
Crypto Markets: Major Outflows Signal Potential Correction
Bitcoin ETFs experienced their first significant reversal after ten consecutive days of positive inflows. $346.8 million flowed out on May 29, a dramatic shift from the previous trend. The last comparable outflow occurred May 13 with just $91.4 million, making this week’s exit nearly four times larger.
This sudden reversal raises questions about whether markets are entering a correction phase, especially after the sustained institutional buying that characterized most of May.
Corporate Bitcoin Adoption Accelerates
Despite ETF outflows, corporate adoption reached new heights:
GameStop made headlines with a $512 million Bitcoin purchase, adding 4,710 BTC to its treasury. This unexpected move signals gaming companies are diversifying beyond traditional assets.
MicroStrategy (Strategy) continued its aggressive accumulation, purchasing 4,020 Bitcoin for $427.1 million at an average price of 106,237 USDT. The company now holds 580,250 Bitcoin worth over $40 billion, purchased at an average cost of 69,979 USDT per coin.
Ethereum whales added over 1 million ETH to their portfolios within 48 hours, suggesting continued institutional confidence in the second-largest cryptocurrency.
Investment Outlook Remains Bullish
Bitwise projects Bitcoin capital flows could exceed $120 billion by end-2025 and reach $300 billion in 2026. US spot Bitcoin ETFs have already attracted $36.2 billion, 20 times the early flows seen in gold ETFs.
Standard Chartered set ambitious Solana targets: 275 USDT by end-2025 and 500 USDT by 2029, calling it a “fast and cheap Ethereum alternative.”
Regulatory Clarity Emerges
The SEC delivered crucial guidance this week, declaring that Proof-of-Stake staking operations are not securities. This decision removes regulatory uncertainty for major networks like Ethereum and Solana.
The SEC will hold its final crypto roundtable June 9 with special focus on DeFi. Participants include Jito Labs, Coin Center, and Venice AI, discussions that could determine DeFi’s regulatory future in America.
New Financial Products Launch
Cantor Fitzgerald introduced an innovative Bitcoin fund offering unlimited upside with gold-linked downside protection, combining crypto growth potential with precious metal stability.
21Shares filed for a SUI ETF on NASDAQ, expanding cryptocurrency options in traditional markets.
Blockchain Infrastructure Expands
Real estate tokenization gained momentum with major implementations:
Dubai’s Department of Land and Property partnered with Ctrl Alt for property tokenization using XRP Ledger as the official blockchain platform.
Bergen County, New Jersey announced plans to tokenize $240 billion worth of real estate contracts on Avalanche over five years, covering 370,000 property deeds.
Rumble Cloud partnered with TRON DAO to enhance decentralized infrastructure for blockchain networks.
US-China Trade Tensions Escalate
International relations deteriorated significantly this week:
US President Trump posted that China has “completely violated its agreement with us,” signaling potential trade conflict escalation.
US Treasury Secretary Yellen declared that “trade talks with China have stopped,” casting uncertainty over the world’s two largest economies.
The US announced plans to expand technical sanctions on China, tightening restrictions on subsidiary companies to limit access to sensitive technologies.
Source | TruthSocial @realDonaldTrump
Legal Battles Over Trade Policy
Courts delivered conflicting decisions on Trump’s tariff policies. A federal court initially blocked “Liberation Day” tariffs, but an appeals court later reinstated them. Trump filed appeals, with the White House arguing that “unelected judges” cannot determine national emergency responses.
Positive development: The EU announced readiness for new trade negotiations, and Trump postponed 50% EU tariffs until July 9 following talks with European Commission President von der Leyen.
Economic Data Shows Mixed Signals
Key US economic indicators painted a complex picture:
Personal Consumption Expenditure (PCE): 2.5% annually (met expectations, down from 2.6%)
Consumer spending: Rose 1.2% annually (below 1.8% estimate, down from 4.0%)
Unemployment claims: Increased to 1.919 million (above 1.890 million estimate)
Core PCE prices: Up 3.4% annually (below 3.5% estimate but up from 2.6%)
GDP price index: Rose 3.7% (highest since Q1 2023)
The data suggests slowing consumer spending alongside rising inflationary pressures, a combination that could influence Federal Reserve policy decisions.
Global Monetary Policy Shifts
China’s M2 money supply showed notable acceleration, exceeding 8% annual growth in some 2025 months, the highest since COVID-19. This reflects Beijing’s expansionary monetary policy to combat economic slowdown and stimulate domestic consumption.
Other major central banks appear ready to follow suit, potentially creating a new global liquidity wave that could benefit risk assets including cryptocurrencies.
Technology and Innovation Updates
Sui network approved fund recovery for the Cetus project hack, implementing a one-time protocol upgrade to restore stolen assets. This demonstrates blockchain communities’ ability to respond quickly to security incidents.
Layer 2 reality check: Many L2 projects now trade below their fundraising amounts. zkSync raised ~$450M but has a 260M USDT market cap. Fuel, Scroll, and Boba all trade near or below their total funding, highlighting the gap between private valuations and market reality.
Hyperliquid (13.03B USDT market cap) surpassed Sui (12.03B USDT), showcasing competitive dynamics in the cryptocurrency space.
Government Policy Developments
Vice President JD Vance at the Las Vegas Bitcoin conference clarified the administration’s Bitcoin stance: “We don’t believe Bitcoin competes with the US dollar” and confirmed “Bitcoin will become an important strategic asset for the United States.”
White House Crypto Commissioner David Sacks criticized Senator Elizabeth Warren, accusing her of “pathological hatred toward the crypto community” and wanting to “drive this sector out of the country.”
Pakistan officially announced creation of a strategic Bitcoin reserve and concurrently allocates 2,000 megawatts of electricity capacity to bitcoin mining, joining other nations recognizing cryptocurrency as a national asset.
Global Financial Shifts
Japan lost its position as the world’s largest creditor for the first time in 34 years, according to the Ministry of Finance. This historic change reflects major global economic shifts and could create opportunities for alternative reserve assets like Bitcoin.
Multiple major global currencies experienced sharp declines over the past decade, reinforcing Bitcoin’s value proposition as a non-printable, limited-supply inflation hedge.
International Adoption Accelerates
Thailand launched cryptocurrency-linked credit card trials for tourists, enabling automatic conversion from digital currencies to Thai Baht. This smart tourism strategy could become a global model.
Circle filed for IPO on the New York Stock Exchange, representing cryptocurrency’s growing integration into traditional finance. BlackRock announced intentions to purchase 10% of Circle’s IPO shares, according to Bloomberg reports.
Looking Forward
The Bitcoin Conference 2025 in Las Vegas brought together key political and financial figures including Donald Trump Jr., Senators Jim Justice, Cynthia Loomis, and Marsha Blackburn, BlackRock’s Robert Mitchnick, and White House official David Sacks, demonstrating cryptocurrency’s mainstream political acceptance.
This week highlighted cryptocurrency’s continued institutional adoption despite market volatility, regulatory progress amid political uncertainty, and blockchain technology’s expanding real-world applications. However, escalating geopolitical tensions and mixed economic signals suggest markets may face increased volatility ahead.
The convergence of traditional finance and cryptocurrency continues accelerating, with major corporations, financial institutions, and governments increasingly viewing digital assets as strategic necessities rather than speculative investments.
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