Crypto Market Holds Steady as U.S.-China Trade Talks Lift Asian Stocks

Major cryptocurrencies remained largely stagnant Monday despite renewed optimism surrounding U.S.-China trade negotiations. Bitcoin (BTC) hovered near $105,650 after forming a doji candle on Sunday, signaling market indecision. XRP dropped over 1% to $2.24 despite breaking a mid-May bearish trendline. With the XRP Ledger’s APEX 2025 conference beginning in Singapore this week, volatility may rise. Dogecoin (DOGE) fell nearly 2%, trading around $0.181 after failing to hold above the 100-day simple moving average.

Meanwhile, Asia’s stock markets saw gains. Hong Kong’s Hang Seng Index climbed 1.3%, surpassing the 24,000 level for the first time since March. South Korea’s KOSPI and China’s Shanghai Composite also advanced, fueled by optimism over the trade talks starting Monday in London. President Trump expressed confidence in the discussions, calling them likely to “go very well.”

Despite the bullish sentiment in equities, China’s latest economic data painted a bleak picture. May’s consumer price index (CPI) fell 0.1% year-over-year, while the producer price index (PPI) dropped 3.3%, deeper than expected. Analysts warn that ongoing U.S. tariffs could push China into deeper deflation, weakening global demand.

To counter slowing growth, China’s central bank recently cut key interest rates and may reduce the reserve requirement ratio again this year. More liquidity injections could support both financial markets and crypto assets.

Markets now turn to the U.S. CPI data for May, due Wednesday. Economists forecast a 0.2% month-over-month increase in headline inflation and a rise in core inflation to 2.9%. A stronger-than-expected reading could cool expectations of Fed rate cuts, potentially triggering downside volatility across risk assets, including cryptocurrencies.