Crypto cools off despite Asia stock rally – Is U.S. inflation the next shock?
Derivatives show signs of volatility ahead of key U.S. economic data release.
- Crypto stalls despite strong global equity rally, as traders brace for key U.S. inflation data
- Declining open interest and high liquidations hint at caution and upcoming volatility in crypto markets
Despite a rally across Asian equity markets, the crypto sector is showing signs of fatigue.
Major digital assets have struggled to maintain their upward trajectory, with sentiment turning cautious as traders await key U.S. data.
This could prove to be a key volatility trigger, reshaping risk appetite across asset classes.
Asian equities fuel global optimism
Global markets started the week on a strong note, driven by a rally in Asian equities that pushed world indices to new record highs.
The MSCI World Index rose 0.2%, reaching 893.88, supported by a nearly 1% gain in Japan’s Nikkei and modest increases in China’s CSI300 and Shanghai Composite.
The surge comes as high-stakes trade talks between the U.S. and China begin in London, focusing on critical minerals.
Optimism surrounding trade progress could help sustain market momentum, though macro uncertainties—especially regarding policy—remain a key concern.
Derivatives flash caution as OI dips
While traditional markets climb, crypto derivatives tell a different story.
According to Coinglass, Bitcoin’s [BTC] Open Interest (OI) has pulled back from late-May highs of over $120 billion to just above $100 billion, even as its price hovered near $107K at press time.
The drop in Futures Volume and OI is a sign of reduced trader conviction, with fewer leveraged bets on directional movement.
Meanwhile, the 24-hour liquidation heatmap reveals $21.75M in BTC liquidations, outpaced by Ethereum [ETH] at $35.63 million, indicating choppier positioning in altcoins.
Solana [SOL] and Ripple [XRP] also saw $5.42 million and $5.13 million wiped out, respectively. The current low-volume environment could set the stage for heightened volatility once macro catalysts emerge.
Triggers ahead
The coming week is stacked with market-moving events, and U.S. inflation data could be the biggest shock yet.
With CPI set for the 11th of June and PPI on the 12th of June, traders are bracing for volatility in risk assets.
A hotter-than-expected inflation report could fuel concerns of extended Fed hawkishness, putting pressure on equities and crypto.
Key events also in focus include today’s US-China trade meeting, DeFi regulation discussions, and the SEC’s decision on the Bitwise DOGE ETF.
The crypto market’s hesitation suggests that investors are already pricing in turbulence, perhaps preparing for impact.
