Bitcoin Rally Faces Resistance After US-China Trade War Pause

Bitcoin jumped to $105,500 Monday morning after the U.S. and China announced a 90-day pause on tariffs, lifting global markets. The rally was short-lived, with BTC sliding to $101,438 by afternoon, as traders locked in gains near resistance levels.

Treasury Secretary Scott Bessent confirmed the tariff cuts in Geneva, noting import duties would drop from 145% to 30%. “Bitcoin’s rally above $105,000 this morning appears to be a direct response to the easing of U.S.-China trade tensions,” said Joe DiPasquale, CEO of BitBull Capital.

Ethereum surged above $2,600 before pulling back to $2,457, while XRP held gains at $2.50 and Solana inched up to $170.99. Analysts say altcoins have outperformed BTC over the past month, with ETH up more than 50% since early April.

Despite Monday’s dip, sentiment remains optimistic, fueled by fresh Bitcoin ETF inflows and continued accumulation from institutional giants like Strategy. However, DiPasquale warned the truce is “temporary” and markets remain “sensitive to shifting macro narratives.”

Dark Stablecoins Could Emerge Amid Stricter Regulations

Tighter regulations in the U.S. and Europe are fueling predictions that censorship-resistant “dark stablecoins” may soon gain traction. On May 11, CryptoQuant CEO Ki Young Ju warned that future stablecoin transactions might trigger automatic tax deductions or wallet freezes due to increased government oversight. He suggested algorithmic stablecoins or stable assets from jurisdictions that reject censorship could fill this gap.

As U.S. lawmakers weigh regulatory bills like the GENIUS Act, similar frameworks like MiCA in the EU are already live. Ju noted that Tether could become a dark stablecoin if it refuses future U.S. compliance. Privacy tech like Zcash and new protocols such as Zephyr are already laying groundwork for private, decentralized stablecoins.

Strategy Adds 13,390 BTC, Now Holds 2.7% of Bitcoin's Supply

Strategy, formerly known as MicroStrategy, announced on May 12 that it had acquired 13,390 BTC for $1.34 billion between May 5 and May 11. Funded through sales of MSTR and STRK stock, the company now holds 568,840 BTC, e.g. 2.7% of Bitcoin’s maximum supply. Executive Chairman Michael Saylor confirmed the average purchase price was $99,856 per Bitcoin.

The acquisition is part of Strategy’s broader “42/42” capital plan to raise $84 billion for BTC purchases by 2027. Despite a $4.2 billion Q1 loss under new fair value rules, Strategy maintains a strong premium to net asset value. Analysts say manageable debt and high investor confidence are enabling continued aggressive BTC buys.

Uniswap Becomes First DEX to Hit $3 Trillion in Volume

Uniswap became the first decentralized exchange to surpass $3 trillion in all-time trading volume, according to founder Hayden Adams. The platform currently processes $3.3 billion in daily volume and maintains a 23% DEX market share, despite its TVL being only half of its 2021 high. PancakeSwap trails closely with 21% share and $2.7 billion in volume.

Uniswap's native UNI token remains down over 84% from its peak despite the milestone. Adams also announced plans to launch a new EIP-7702 compatible smart wallet for faultless user experiences. The Ethereum Pectra upgrade, which enables smart contract features for accounts, is already being integrated by other wallets like Trust Wallet.

Data of the Day

A report from the Bank for International Settlements (BIS) revealed that speculative trading is the primary driver behind $600 billion in cross-border crypto transactions. The data focused on flows involving Bitcoin, Ether, USDT, and USDC during Q2 2024, pointing to a close relationship with global interest rate trends. The BIS emphasized that these flows increasingly mirror behavior seen in traditional financial assets.

The study also noted that practical use cases still play a role, especially in low-value Bitcoin and stablecoin transfers. High inflation and costly fiat remittance fees motivate users in emerging markets to turn to crypto for cross-border payments. The BIS warned that crypto’s deeper integration with legacy finance could magnify systemic risks in turbulent economic conditions.

More Breaking News

• Trump-backed American Bitcoin mining company will go public via merger with Gryphon Digital, trading on Nasdaq as 'ABTC' and sparking a 200% surge in Gryphon shares.
• DeFi Development Corp has crossed $100M in Solana holdings after a $24M purchase, continuing its accelerated accumulation strategy.
• SEC Chair Paul Atkins declared a “new day” for crypto regulation, promising a rules-based approach and rejecting past enforcement-first tactics.
• Prosecutors denied claims of evidence suppression in the Samourai Wallet case, stating disclosures were timely and no hearing is needed.
• Illegal crypto mining caused a 300% surge in electricity theft cases in Malaysia, with over 2,300 operations shut down annually since 2020.
• David Bailey’s Nakamoto will merge with KindlyMD and raise $710M to launch a Bitcoin treasury-focused public holding company.
• Crypto custodian BitGo has secured a MiCA license from Germany’s BaFin, enabling full EU operations for digital asset services.
• Real estate manager PREH launched a $100M tokenized multifamily fund on Chintai blockchain, backed by institutions like Carlyle and KKR.

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