The Lowdown
- In crypto land, Bitcoin cooled off at around $95k on Tuesday, while most major altcoins saw a dip.
- Trump seemed less than happy on Tuesday, as he fielded questions about trade deals.
- The stock market took a tumble after a nine-day winning streak, with the S&P 500 and Nasdaq each losing 0.4%.
Dive into SCENE
Cryptocurrency Encounters Setback as Trump Airs Trade Grievances before Central Bank Decision
The price of Bitcoin flirted with the $95k mark on Tuesday, as U.S. stocks plummeted amidst President Trump's apparent discontent with the progress of trade negotiations.
The top crypto by market cap remained steady over the previous 24 hours, according to crypto data provider CoinGecko. The majority of the leading altcoins showed a slight decline, with Ethereum and Solana dropping 2% to $1,780 and 1.5% to around $145, respectively.
During Canadian Prime Minister Mark Carney's visit to the White House, Trump pushed back against the increasing appetite from investors for trade deals with nations ensnared in his efforts to reframe global trade through "reciprocal" tariffs, as reported by CNBC.
"Everyone keeps asking, 'when, when, when are you going to sign deals?'" he reportedly grumbled. "We don't have to sign deals, they have to sign deals with us."
In response to a query about whether Carney could say something to persuade Trump to lift tariffs on Canadian goods, Trump responded, "No." That's just the way it is."
Though members of Trump's cabinet have hinted at looming deals with countries like India and Japan for weeks, the administration has yet to unveil an agreement with a foreign trading partner.
During Congressional testimony on Tuesday, U.S. Treasury Secretary Scott Bessent hinted that negotiations are ongoing with nations affected by Trump's "reciprocal" tariffs. However, in a departure from Trump's past comments regarding Chinese President Xi Jinping, Bessent stated that China had yet to engage with the U.S. to negotiate.
"There are 18 very important trading relationships," he said. "We are currently negotiating with 17 of those trading partners. China, we have not engaged in negotiations with, as of yet."
In the wake of Monday's rally, Wall Street stocks took another dive. The S&P 500 and tech-heavy Nasdaq each stumbled 0.4%, according to Yahoo Finance.
Investors pulled back a day before the Federal Reserve was expected to hold its benchmark interest rate steady at the conclusion of its policy meeting. The central bank was also slated to release quarterly projections of metrics like the unemployment rate and inflation.
Katalin Tischhauser, head of research at digital asset banking group Sygnum, said that Fed officials are likely to overlook data points that came before Trump's "Liberation Day" announcement involving sweeping tariffs. This includes a Gross Domestic Product reading last week, which showed a contraction because imports are subtracted.
"Ahead of Liberation Day, imports have been fast-tracked and brought forward, skewing the GDP number," she said. "The negative reading is therefore unlikely to spur the Fed into action."
Traders currently forecast a 31% chance that the Fed will cut interest rates for the first time since December at the conclusion of its June meeting, per CME FedWatch. However, these odds could change dramatically once Fed Chair Jerome Powell's remarks come into focus.
Edited by James Rubin
Flash Briefing
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Insights from Decrypt's Enrichment Data
Trade Agreements between U.S. and China
As of May 12, 2025, the U.S. and China have reached a significant agreement in their trade negotiations. Key points of this agreement include tariff adjustments, the removal of retaliatory measures, and future discussions to open market access for American exports. Both countries have emphasized the significance of their bilateral economic and trade relationship.
- The digital currency Bitcoin, the leading cryptocurrency, hovered around $95k on Tuesday, coinciding with a dip in U.S. stocks and President Trump's discontent with trade negotiations.
- Ethereum, the second-largest cryptocurrency by market cap, dropped 2% to $1,780, while a majority of altcoins also showed a slight decline.
- During a meeting with Canadian Prime Minister Mark Carney, President Trump pushed back against the rise in investor interest for trade deals with nations affected by his "reciprocal" tariffs.
- U.S. Treasury Secretary Steve Mnuchin hinted during Congressional testimony that negotiations are ongoing with 17 of the 18 major trading partners, but China was not among them.
- Investors pulled back a day before the Federal Reserve was expected to hold its benchmark interest rate steady. Katalin Tischhauser, head of research at Sygnum, suggested that the negative GDP reading was skewed due to fast-tracked imports before Trump's "Liberation Day" announcement.
- Traders forecasted a 31% chance of the Fed cutting interest rates for the first time since December at the conclusion of its June meeting. However, these odds could change significantly once Fed Chair Jerome Powell's remarks come into focus.
- In the world of digital currency and finance, decentralized applications (dapps) and initial coin offerings (ICO) are playing an increasingly significant role, with Ethereum being a key player in this space along with other digital assets undergoing mining and trading.
