Bitcoin Holds Above $108,000 Despite Cooling US CPI and Historic US-China Deal
As global financial markets reacted positively to lower-than-expected inflation data and a major turning point in US-China trade relations, Bitcoin remained cautious, hovering around $108,000 and $110,000. The move once again highlighted the unconventional and sometimes uncorrelated nature of the world's leading digital asset compared to traditional financial markets.
Inflation Cools, Wall Street Accelerates. But Bitcoin Stalls
The US Bureau of Labor Statistics (BLS) announced that the consumer price index (CPI) in May 2025 increased by only 0.1% compared to the previous month, lower than the 0.2% forecast by economists at FactSet. The annual growth rate reached 2.4%, marking a clear slowdown from the previous hot growth. Immediately, the major indices on Wall Street reacted positively:
S&P 500: +0.17%
Nasdaq: +0.10%
Dow Jones: +0.49%
US President Donald Trump did not miss the opportunity to celebrate the CPI data, saying that this is a reason for the Federal Reserve (Fed) to “cut interest rates by a full percentage point” at the upcoming policy meeting.
However, Bitcoin (BTC) seemed immune to these positive signals. After hovering around $110,000 on Wednesday morning, BTC prices fell slightly and ended the session at $108,673, down 0.17% over the past 24 hours.
Shocking US-China Deal: But BTC Remains “Calm”
Part of the excitement comes from the unexpected news: The US and China have reached a comprehensive trade agreement after a series of tense negotiations in London. According to Mr. Trump, the agreement will:
Impose a 55% tariff on imports from China
Impose a 10% tariff on US goods entering China
Need final approval from President Xi Jinping
On the Truth Social platform, Mr. Trump declared: “Deal done, CPI is great, Fed should act now.” However, Bitcoin did not reflect the same excitement, suggesting that investors remain cautious, possibly waiting for the Fed to make a specific decision on interest rates before stepping up trading.
BTC Market Stats: Liquidity Shrinks, Volumes Fall
At the time of reporting:
BTC Price: $108,673
24h Trading Volume: $50.47 billion (-12.35%)
Total BTC Market Cap: $2.16 trillion (+0.36%)
Dominance: 63.87% (-0.33%)
24h Trading Range: $108,558, $110,384
Despite the relatively stable price, data from Coinglass shows that Open Interest increased slightly by 0.65% to $75.52 billion, reflecting cautiously positive sentiment in the derivatives market. However, the majority of leveraged traders remain bullish (long), resulting in $3.15 million in liquidations from long positions accounting for nearly the entire 24-hour liquidation total ($3.19 million).
This shows the uncertainty about BTC’s next move, and could be a warning to investors lacking discipline in the current volatile environment.
Conclusion: Is Bitcoin the “Calm Before the Storm”?
While the stock market is rallying on positive macro data and geopolitical developments, Bitcoin has shown a significant degree of independence. Some analysts believe that BTC is in a “price compression” phase before a major breakout, possibly after the Fed’s policy meeting next week.
The reduced trading volume and lack of volatility could be a sign that whales and institutional investors are sitting on the sidelines, waiting for clarity on macroeconomic factors and monetary policy.
Meanwhile, the altcoin market continues to gain market share as investors seek higher yields and more attractive volatility, which could put short-term pressure on Bitcoin’s dominance.
Notable Highlights:
US CPI in May Lower Than Expectations, Supports Argument for Monetary Policy Easing
US-China Reach Historic Trade Deal, Positive Impact on Global Sentiment
BTC Holds Above $108,000, Lacks Clear Upside Momentum
Markets Await Fed’s Clear Signal at Upcoming Rate Meeting