Daily Market Dispatch – May 12, 2025. Overview. Signals are go.

12 May 2025, 14:40

Daily Market Dispatch – May 12, 2025 Overview Signals are go. Markets opened the week on an optimistic note following a breakthrough in U.S.-China trade talks. The White House confirmed it will reduce tariffs, triggering a rally across crypto markets and reinforcing Bitcoin’s role as a macro hedge. BTC is trading near $104,000, with momentum building for a potential breakout to new all-time highs. Institutional inflows remain strong, led by major Asian and U.S. players, while inflation data due this week will help determine whether the rally has further room to run. Bitcoin Bitcoin is holding firm around $104,000, buoyed by easing geopolitical tensions and renewed institutional demand. Derivatives markets show rising call interest at $110,000 and $120,000 strike levels, and inflows into crypto funds hit $882M last week, the highest since Q1. A push toward $109,000 is likely if CPI data on Tuesday doesn’t surprise to the upside. On the macro front, Bitcoin continues to outperform gold. As trade concerns fade, a key BTC/gold ratio chart shows the bull run could accelerate, with BTC regaining dominance as the preferred inflation hedge. Ethereum & Altcoins Ethereum is holding above $2,500 after last week’s Pectra-driven breakout. While ETH has underperformed BTC in relative terms, Citi predicted stablecoins – largely Ethereum-based – will expand well beyond crypto trading into real-world finance, further embedding ETH in global infrastructure. Altcoins are rallying across the board. South Korean traders have piled into XRP and Dogecoin amid the improved macro backdrop, while SUI also outperformed major tokens over the past week, benefiting from increased developer traction and fund rotation. Macro & Institutional MicroStrategy disclosed a fresh $1.34B Bitcoin buy, adding 13,390 BTC – while Japan’s Metaplanet also expanded its position with a $126M purchase, cementing its position as Asia’s largest corporate holder. In addition, the market’s rally has been bolstered by signals of easing from Washington. The U.S. will reduce tariffs on Chinese goods below the previously floated 80% level, helping to cool tensions that weighed heavily on risk sentiment throughout April. Ahead of Tuesday’s inflation report, risk assets are enjoying a window of relief, with the S&P 500 surging nearly 3% on the tariff truce news. Meanwhile, South Korean political candidates have voiced bipartisan support for spot crypto ETFs ahead of elections, indicating expanding political alignment on digital asset policy. Looking Ahead Markets are watching Tuesday’s U.S. CPI print closely. A downside surprise could send Bitcoin to new all-time highs, while a strong print might cool the rally. Later this week: PPI, jobless claims, retail sales, and a Powell speech will fill out a high-stakes macro week. All in all, crypto’s momentum is intact, with the Securities and Exchange Commission’s fourth roundtable on crypto regulation with a keynote by chairman Paul Atkins scheduled for later today. — Iliya Kalchev, Nexo Dispatch analyst For informational purposes only; not financial or investment advice.