MARKETS week ahead: June 30 – July 7 Last week in the news
The news regarding a deal settlement on trade tariffs between the U.S. and China, brought some relief on financial markets during the previous week. The most significant weekly gainer was the US equity market, where the S&P 500 reached a fresh, new all time highest level at 6.185. On the same grounds, the price of gold turned into a correction, with a weekly drop of 2%, reaching the level of $3.273. A further easing of inflation in the U.S. impacted 10Y Treasury yields to ease down to the level of 4,27%. The crypto market managed to sustain upper grounds during the week, with BTC holding above the $107K.
The information which occupied the market's attention during the previous week, was that the US Administration and China managed to settle a trade tariffs deal. Although the details of a deal have not been publicly disclosed, still, the market reacted in a positive manner, bringing the US equity market to higher grounds. The posted macro data showed further ease in the US inflation. Fed's favourite inflation gauge, the PCE index reached 0,1% in May, bringing it to the level of 2,3% on a yearly basis. The core PCE remains elevated, with 0,2% in May and 2,7% for the year. Still, all figures were in the line with market expectations, increasing odds that the Fed might cut interest rates in September.
Weekly tariffs news include the discontinuation of trade negotiations with Canada. As the U.S. President posted on social media, the termination of negotiation is immediate, and the US will decide on the level of tariffs within the next five days. Such a decision came after Canada decided to impose a digital services tax on US tech companies.
CNBC is reporting that Coinbase is the best performing stock in June, with a surge of 43% only during this month. As the reason for such a strong price movement analysts are noting several combined reasons, like its inclusion into S&P 500 index, the GENIUS Act which was passed in the Senate and a strong performance of Circle.
Fed Chair Powell was for one more time a topic of the US President answering the journalists questions. The US President commented that he will put as the head of the Fed anyone who will support the rate cuts. He also noted that there are several candidates for this place, not explicitly mentioning names.
There has been a discussion among analysts whether stablecoins represent a threat to payment card business, concretely to Visa and Mastercard. The one alternative for these companies to sustain the market game is to issue their own stable coins which could function on a prepaid basis. However, a few services which are currently not provided by stablecoins, like buy now - pay later are still advantageous to card issuers.
CRYPTO MARKET
It was a week of ups and downs on the crypto market, however, the week ended in a positive territory. The US-China deal on trade tariffs brought some relaxation among investors, which was also reflected in a crypto market. Total crypto market capitalization gained 4% during the week, where major crypto coins are participating with 70% in total funds inflow of $130B. Daily trading volumes were slightly decreased to the level of $146B on a daily basis from $187B traded a week before. Total crypto market capitalization from the beginning of this year currently stands at 1%, with a total funds inflow of $26B.
The major coins on the market were the ones which mostly supported an increase in a weekly capitalization of the crypto market. BTC managed to add $87B to its market cap, increasing it by more than 4% on a weekly basis. Second place took Solana this week, with an inflow of $7,2B, where its market cap surged by almost 10%. XRP had a strong funds inflow of $5,8B, or 4,7%, while ETH collected $5B which was an increase of 1,8% for this coin. BNB was moving within a modest territory, with a weekly surge of 2% adding almost $2B to its market cap.
It was an active week also when it comes to coins in circulation. This week both Solana and Polkadot had an increase of the number of coins on the market of 0,6%. At the same time IOTA increased its number of coins by 0,8%. Although it is a stablecoin, it is worth mentioning that Tether is continuously increasing the number of its coins, which surged by 1% last week. This could be treated as an indicator of increasing popularity of stablecoins during the recent period.
Crypto futures market
The crypto futures market ended the week in alignment with the spot market developments. BTC futures were closed above 3% higher from the end of the previous week. Futures maturing in December this year were closed at $110.680, and those maturing a year later were last traded at $117.270. On a positive side is that the long term futures are slowly nearing the historically highest level of $124K reached in January this year.
ETH futures were traded relatively flat compared to the week before. Futures maturing in December 2025 closed the week at $2.514, and those maturing in December 2026 achieved the last price at $2.703.
