Bitcoin’s Wild Ride: Tariffs, Tumbles, and Tantalizing Trades!

What to know:

By Francisco Rodrigues (All times ET unless indicated otherwise)

Oh dear! Cryptocurrency markets took a nosedive on Friday, as if they were on a rollercoaster designed by a mad scientist! 🎢 The renewed worries over U.S. trade policy sent traditional markets into a tizzy, overshadowing what could have been a jolly good day for the crypto world.

The CoinDesk 20 (CD20) Index, that cheeky little measure of the broad crypto market, plummeted 4.4% to 3,129 in just 24 hours. And while Bitcoin slipped a modest 2.8% to around $105,300, let’s not forget that this plucky cryptocurrency has been strutting its stuff above $100,000 for over 20 days! Talk about a stubborn little bugger! 💪

But wait! The sell-off was triggered by a U.S. appeals court that decided to reinstate trade tariffs, which a lower court had deemed illegal. Oh, the drama! This reversal has everyone biting their nails, fearing a prolonged trade war. Treasury Secretary Scott Bessent, in a rather gloomy interview, mentioned that negotiations with China were “a bit stalled.” Well, that’s just peachy! 🍑

“When it comes to global trade right now, the only certainty is uncertainty,” said Darren Nathan, head of equity research at Hargreaves Lansdown, in a statement that could win an award for the most obvious observation of the year. Meanwhile, Trump was reportedly nudging Fed Chair Jerome Powell to lower interest rates during a tête-à-tête at the White House. What a delightful mess! 😅

Despite the chaos, Bitcoin remains the belle of the ball! BlackRock’s iShares Bitcoin Trust (IBIT) is experiencing record-low volatility and attracting billions from investors like moths to a flame. Spot Bitcoin ETFs have seen a whopping $5.85 billion in net flows this month, up from $2.97 billion in April. Cha-ching! 💰

And just when you thought it couldn’t get any wilder, Spanish banking giant Santander is considering letting retail clients dip their toes into the cryptocurrency pool, while Panama is proposing that ships pay transit fees in BTC. Ahoy, matey! 🏴‍☠️

Now, all eyes are glued to the core PCE inflation data, a key gauge for Fed policy. A hot reading later this morning could send hopes for rate cuts crashing down like a house of cards, weighing on risk assets further. Yikes!

“Any sign of worsening inflationary pressure is likely to weigh on expectations for further interest cuts by the Fed this year, which would be a worry given the inertia building in the economy,” Hargreaves Lansdown’s head of equity research wrote. But remember, folks, “the numbers need to be taken with a large pinch of salt, given that they’re yet to feel the full impact of tariffs.” 🧂

For now, Bitcoin’s ability to cling to that psychological $100,000 line remains a key landmark amid the uncertainty. Stay alert, dear readers! 🚨

Token Talk

By Shaurya Malwa

Starting in June, the Central African Republic will tokenize over 1,700 hectares of land near Bangui using the government’s official CAR token on the Solana blockchain. How very modern! 🌍

🇨🇫 I have signed a presidential decree to tokenize over 1,700 hectares of land in the Central African Republic.

Starting June, land concessions will be accessible online using $CAR, directly on @solana.

A new era of access and transparency begins.

— Faustin-Archange Touadéra (@FA_Touadera) May 29, 2025

A presidential decree references the nation’s mining code and recent tokenization laws, suggesting the land could be allocated for gold or diamond extraction. Shine bright like a diamond! 💎
The CAR token is up 10% in the past 24 hours and has gained 127% this week, with prices starting to climb even before the official announcement. Talk about a hot ticket! 🔥
President Touadéra announced the plan on X, framing it as a step toward transparency and easier access to national resources. Hooray for progress!
The land — about the size of 2,500 football fields— lies west of Bossongo village, 45 km from the capital. That’s a lot of space for a game of footie! ⚽
CAR, which has a market capitalization of $56.63 million and over 18,400 holders, remains down nearly 93% from its all-time high. Ouch!

Derivatives Positioning

Premium in ether futures on the CME remains elevated relative to BTC, indicating a persistent bias for the Ethereum blockchain’s token. Perpetual funding rates on offshore exchanges paint a similar picture. 🎨
XLM and AVAX see negative funding rates, suggesting a bias for bearish, short positions. Not so rosy for them!
The one-year put-call skew on IBIT flipped positive Thursday, indicating renewed bias for put options, offering downside protection. Safety first!
BTC call skews have weakened across the board on Deribit. Oh dear, what’s happening?
Block flows on Paradigm featured risk reversals and a large short strangle, involving $100K and $170K strike options, both expiring in December. Sounds like a circus act! 🎪

Market Movements

BTC is down 0.47% from 4 p.m. ET Thursday at $105,705.74 (24hrs: -3.08%)
ETH is down 1.01% at $2,618.44 (24hrs: -4.43%)
CoinDesk 20 is down 1.85% at 3,133.82 (24hrs: -4.59%)
Ether CESR Composite Staking Rate is down 2 bps at 3.08%
BTC funding rate is at 0.0077% (8.388% annualized) on Binance. Not too shabby!

DXY is up 0.31% at 99.58
Gold is down 0.74% at $3,296.9 /oz
Silver is down 0.55% at $33.13/oz
Nikkei 225 closed -1.22% at 37,965.1
Hang Seng closed -1.2% at 23,289.77
FTSE is up 0.79% at 8,785.29
Euro Stoxx 50 is up 0.44% at 5,401.87
DJIA closed on Thursday +0.28% at 42,215.73
S&P 500 closed +0.4% at 5,912.17
Nasdaq closed +0.39% at 19,175.87
S&P/TSX Composite Index closed -0.28% at 26,210.6
S&P 40 Latin America closed unchanged at 2,600.63
U.S. 10-year Treasury rate is down 5 bps at 4.42%
E-mini S&P 500 futures are down 0.15% at 5,913.75
E-mini Nasdaq-100 futures are down 0.17% at 21,372.75
E-mini Dow Jones Industrial Average Index futures are down 0.1% at 42,235

Bitcoin Stats

BTC Dominance: 63.99 (0.42%)
Ethereum to bitcoin ratio: 0.02486 (-0.28%)
Hashrate (seven-day moving average): 917 EH/s
Hashprice (spot): $54.94
Total Fees: 5.27 BTC / $566,744
CME Futures Open Interest: 153,800
BTC priced in gold: 31.7 oz
BTC vs gold market cap: 8.97%

Technical Analysis

The chart shows BTC has dropped below a trendline that represents the sharp recovery from early-April lows near $75,000. Oh dear, what a fall!
The breakdown coincides with the bearish crossover of the 50- and 200-hour simple moving averages. A double whammy!
The bearish shift points to a test of supports at $102K and $100K. Fingers crossed! 🤞

Crypto Equities

Strategy (MSTR): closed on Thursday at $370.63 (1.75%), down 0.48% at $368.86 in pre-market
Coinbase Global (COIN): closed at $248.84 (-2.14%), down 0.42% at $247.8
Galaxy Digital Holdings (GLXY): closed at C$27.05 (-3.39%)
MARA Holdings (MARA): closed at $14.61 (-1.68%), down 0.82% at $14.49
Riot Platforms (RIOT): closed at $8.18 (-2.39%), down 0.86% at $8.11
Core Scientific (CORZ): closed at $10.69 (-0.83%), unchanged
CleanSpark (CLSK): closed at $8.78 (-3.62%), down 1.14% at $8.68
CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $16.9 (-2.14%)
Semler Scientific (SMLR): closed at $40.08 (-3%), down 0.2% at $40
Exodus Movement (EXOD): closed at $30.31 (16.85%), up 2.18% at $30.97

ETF Flows

Spot BTC ETFs

Daily net flow: -$346.8 million
Cumulative net flows: $44.97 billion
Total BTC holdings ~ 1.21 million

Spot ETH ETFs

Daily net flow: $91.9 million
Cumulative net flows: $2.99 billion
Total ETH holdings ~ 3.60 million

Overnight Flows

Chart of the Day

The chart shows stablecoin usage in business-to-business payments has exploded from near zero two years ago to nearly $3 billion. Talk about a growth spurt! 📈
The data is evidence of stablecoins’ growing adoption in the real economy. Hooray for innovation!