Bitcoin is currently around the level of $105,000, after hitting a record high of $110,000 a week ago, it has since entered a corrective decline.

There is a hope that after reaching the peak price it would continue into an uptrend, but it has not clearly translated into a sustained rise.

However, Bitcoin is already in the high price range, positioned higher than Ethereum and other currencies. There is buying pressure that goes beyond individual investors, as corporations are starting to balance Bitcoin on their balance sheets.

One of the factors of the rise or fall is the issue of U.S. tariffs.

- The U.S. Court of Appeals revived President Trump’s tariffs. The Trump administration had appealed a federal court ruling that claimed the president did not have broad authority to impose tariffs globally.

- President Trump stated that China had “violated” the U.S. tariff agreement, and U.S. Treasury Secretary Steven Mnuchin said that trade negotiations with China are “at an impasse.”

- The United States extended the halt on tariffs on certain Chinese products until August 31. President Trump and Chinese President Xi Jinping held a phone call this week to discuss trade.

- President Trump set July 8 as the deadline for concluding the trade agreement, and urged all countries to submit their best proposals by Wednesday to avoid reintroduction of tariffs.

As above, the U.S. is trying to reduce debt as much as possible, but bond prices are falling, making it not so smooth.

Next is Ethereum, which rose sharply in early May, and has since traded in a range around $2,800.

However, it seems less likely to drop compared to before. Timing is anchored to the expected Spectra upgrade.

Ethereum aims to increase its trading volume by tenfold within a year and is advancing the strengthening of Layer 1 chains. Also, staking for Ethereum ETFs is drawing attention, including the SEC’s stance.

Moreover, publicly listed company SharpLink is raising $420 million to designate Ethereum as part of its financial reserve assets.

◯ Japan has fallen to second place in net external assets.

Japan’s net external assets exceed 500 trillion yen for the first time, but for the first time in 34 years it has fallen from first to second place in the world—Yahoo News

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It is said that Japan’s net external assets were built on the foundation of rapid economic growth. From there, the trade balance turned negative, and the status of the Japanese yen has been gradually declining.

The government’s decision not to issue deficit-financed bonds indicates a lack of active fiscal spending, and if this continues, there is a sense that the value of the Japanese yen will keep falling.

Holding assets that perform well in inflation. This may be the key.

◯ The dollar will no longer be the key currency; seek a substitute for money

Ray Dalio, founder of the world’s largest hedge fund Bridgewater, spoke about the debt problems of various countries and the depreciation of currencies in a Fox News interview.

Ultimately, what happens if the Trump administration cannot cut spending? The problem of massive government debt remains, and U.S. Treasuries will likely decline.

If debt reduction is not timely and U.S. Treasuries keep falling, the central banks will be left with no choice but to print money to buy government bonds.

If that happens, America will have to sacrifice the dollar to rescue U.S. Treasuries.

But a decline in the dollar does not necessarily mean a decline in USDJPY.

If neither the dollar, the yen, the euro, nor the yuan are viable, what will people turn to? They would gravitate toward precious metals, and gold prices have been rising rapidly—the Global Macro Research

◯ Trump Media & Technology Group, which runs the social media Truth Social, announced on May 30 that it completed a $2.44 billion fundraising to acquire Bitcoin for investment, about 350 billion yen (assuming $1 = 144 yen). — CoinDesk

This became quite big news. In short, like MicroStrategy, they bought Bitcoin and included it on their balance sheet, and such moves have become more common recently (Gamestop, a U.S. company, also purchased Bitcoin around the same time).

With this level of corporate buying, individual time to buy Bitcoin may be limited. Recently, voices saying that owning 0.1 BTC could secure the future have emerged.

◯ Elon Musk announced on X that the platform’s new feature “XChat” has been released. XChat supports encrypted messages, disappearing messages, sending all kinds of files, voice calls, and video calls. This application is built in Rust and adopts a cryptographic architecture similar to Bitcoin.

◯ Possibility of staking-enabled ETFs

The U.S. Securities and Exchange Commission (SEC) has said that staking activities on proof-of-stake networks do not constitute securities trading, potentially opening a path to include staking in cryptocurrency ETFs.

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POS is designed to earn rewards through staking, and the SEC has indicated that this does not relate to securities. At this stage, it may not be fully approved, but in the future, when Ethereum and then Solana (SOL) ETFs are approved, staking-based holdings may be possible.

◯ On-chain Ethereum’s position

Everyone is gathering on-chain, around Ethereum

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Cryptocurrency Market Analysis [June 3]