Daily Market Dispatch – May 15, 2025. Overview. After a strong early-week rally, crypto markets took a breather on Thursday.

15 May 2025, 17:34

Daily Market Dispatch – May 15, 2025 Overview After a strong early-week rally, crypto markets took a breather on Thursday. Momentum across risk assets moderated as investors digested a fresh batch of macroeconomic data and looked ahead to more definitive signals from the Federal Reserve. U.S. equity futures dipped slightly, pulling back from recent highs, though the S&P 500 remains in positive territory for the week, supported by trade optimism and easing inflation. Thursday’s Producer Price Index (PPI) report showed a 0.5% monthly decline—another disinflationary breadcrumb following this week’s CPI data. Meanwhile, retail sales ticked up 0.1%, suggesting consumer demand remains firm. Fed Chair Jerome Powell opened the central bank’s two-day policy conference by suggesting the Fed’s framework may need updating in an era of frequent supply shocks, though he remained silent on near-term rate direction. Bitcoin Bitcoin traded above $102,000 intraday, holding ground after a six-day stretch near $104,000 and maintaining a market cap above $2 trillion. The asset has been supported by soft inflation data and improved trade sentiment, though investors are seeking further confirmation from policymakers before extending positions. ETF flows reflected this mixed tone. Bitcoin ETFs rebounded to solid inflows of $319.5 million on May 14. The outflow of $91.4 million earlier in the week didn’t seem to hold ground. Futures open interest remains above $30 billion, while options activity leans modestly bullish. Accumulation by mid-sized wallets continues, even as smaller holders take profit. Bitcoin remains above $100,000 – a level that once served as resistance and may now be forming a new level of support. Traders remain watchful ahead of clearer macro cues. Ethereum & Altcoins Ethereum hovered around $2,570, easing from recent highs. The Ethereum Foundation unveiled its “Trillion Dollar Security Initiative” this week, a multi-phase program focused on long-term security and institutional readiness. Altcoins followed a similar path. Solana dropped 5.6%, while Cardano, Polygon, and Dogecoin all declined more than 5%. Still, Bitcoin and stablecoin dominance are slipping, suggesting that early-stage rotation into altcoins could be underway. Macro & Institutional The PPI report showed producer prices fell 0.5% in April, while core PPI also declined. Year-over-year, headline inflation slowed to 2.4%, reinforcing the broader disinflationary trend. US retail sales rose 0.1%, slightly above expectations, suggesting consumer demand remains resilient even amid policy uncertainty. Powell’s comments Thursday focused on longer-term policy strategy rather than immediate direction. He noted that the Fed’s framework may require updates to better account for persistent supply shocks, suggesting the central bank is reassessing its approach in light of recent inflation dynamics. On the policy front, the GENIUS Act – the US stablecoin bill – is regaining momentum. Lawmakers now aim for a vote before Memorial Day, with revisions removing controversial provisions and sharpening the bill’s focus on consumer protection and market oversight. Institutional engagement with stablecoins continues to rise, and regulatory clarity remains a central theme. Looking Ahead With inflation and spending data now in focus, upcoming Eurozone CPI and U.S. jobless claims could help refine the macro outlook next week. Markets continue to monitor whether the Fed will shift its tone, or remain patient through the summer, though expectations begin to shift for a September rate cut to kick off quantitative easing. Crypto markets remain steady but sensitive. While momentum has cooled, technical structure remains intact. The coming days may help define whether this is a healthy pause, or the early signs of something deeper. – Iliya Kalchev, Nexo Dispatch analyst For informational purposes only; not financial or investment advice.