Everything Investors Should Know About the $TRUMP Meme Coin

Key Points

• Crypto majors like XRP, Cardano’s ADA, and Solana’s SOL declined over 1% in the past 24 hours, while dogecoin dropped 10% for the week, erasing early June gains.
• Ether (ETH) fell 0.7%, reversing earlier weekly gains, amid broader market concerns.
• Spot bitcoin ETFs in the U.S. saw $389 million in inflows on Wednesday, with spot ETH ETFs gaining $19 million.
• U.S. officials are considering a strike on Iran, and the Federal Reserve’s persistent inflation outlook is unsettling investors across equities, crypto, and commodities.
• Bitcoin remains rangebound, up 13% year-to-date but failing to act as a clear safe haven or risk asset amid global tensions.

Summary

Crypto markets faced further declines on Thursday as major cryptocurrencies like XRP, Cardano’s ADA, and Solana’s SOL dropped over 1% in 24 hours, while dogecoin fell 10% for the week, erasing June gains. Ether also lost 0.7%, reversing earlier progress. The downturn coincides with heightened fears of conflict in the Middle East and a strengthening dollar. Despite the slump, U.S. spot bitcoin ETFs attracted $389 million in inflows on Wednesday, and spot ETH ETFs saw $19 million in positive flows. Meanwhile, U.S. officials are reportedly considering a strike on Iran, and Federal Reserve Chair Jerome Powell warned that tariffs and global tensions could worsen inflation, impacting consumers directly. With rates unchanged, the Fed seeks more data before cuts, adding to market uncertainty. Altcoins, seen as riskier, are often first to be sold off during macroeconomic stress. Bitcoin, up 13% year-to-date due to ETF inflows and dollar weakness, remains stuck in a range, neither reacting to risk appetite nor surging like gold amid conflict, according to FxPro analyst Alex Kuptsikevich.

Key Points

• Ethereum Turnaround: Ethereum is showing signs of a significant recovery, with a 30% surge in the past 90 days, indicating a potential sustained rally.**
• Macro Environment: Cooling inflation (2.4% as of May) and expectations of Federal Reserve rate cuts create a favorable environment for crypto investments like Ethereum.**
• Institutional Investment: Significant inflows into Ethereum-linked products, including $205 million in one week in May and nearly $900 million over 16 days by mid-June, signal strong institutional support.**
• Pectra Upgrade: The upcoming Pectra upgrade in late 2025 aims to improve user-friendliness, security, and transaction cost predictability, potentially boosting developer activity and demand.**
• Staking Growth: Record staking of 34.6 million Ethereum coins (29% of supply) as of June 11 reduces available float, supporting price strength as investors prefer yield over speculation.**

Summary

Ethereum (CRYPTO: ETH) is staging a notable comeback, surging 30% in the last 90 days after underperforming in 2023 and 2024. Four key catalysts suggest this rally could be the start of a longer-term trend. First, cooling inflation at 2.4% and potential Federal Reserve rate cuts are creating a favorable macro environment for riskier assets like crypto. Second, institutional investors are pouring in, with $205 million flowing into Ethereum products in a single week in May and nearly $900 million over 16 days by mid-June, signaling long-term commitment. Third, the Pectra upgrade, set for late 2025, promises to enhance user experience, security, and cost stability, likely driving demand. Lastly, staking has hit a record 34.6 million coins (29% of supply), locking up supply and supporting price growth as investors prioritize yield. While risks like macro shocks or upgrade issues remain, Ethereum’s outlook appears stronger than it has in months, bolstered by easing inflation, institutional backing, technological advancements, and staking trends.

Key Points

• Bitmain, Canaan, and MicroBT, which control over 99% of global Bitcoin mining ASIC production, are starting US-based manufacturing to counter high US tariffs on Chinese imports.
• US tariffs on Chinese goods, currently at 25% after previously exceeding 100%, are driving these companies to relocate production to mitigate economic impacts.
• Bitmain alone accounts for 82% of Bitcoin ASIC production, with MicroBT at 15% and Canaan at 2%, highlighting the oligopolistic nature of the market.
• Geopolitical tensions and tariffs could reduce US demand for mining rigs, potentially benefiting foreign markets with cheaper surplus inventory.
• Challenges remain, including past US customs issues for Bitmain and uncertainties about whether US production can match China's cost efficiency.

Summary

Bitmain, Canaan, and MicroBT, which dominate over 99% of the global Bitcoin mining ASIC market, are establishing production facilities in the US to evade steep tariffs imposed by the Trump administration on Chinese imports, currently at 25% after previously surpassing 100%. According to a Reuters report, this strategic shift aims to mitigate the economic burden of these tariffs amid a thriving US Bitcoin industry. A University of Cambridge study highlights the market's oligopolistic structure, with Bitmain leading at 82%, followed by MicroBT at 15%, and Canaan at 2%. However, geopolitical tensions and tariffs could dampen US demand for mining rigs, potentially pushing surplus inventory to cheaper foreign markets, as noted by Hashlabs Mining CEO Jaran Mellerud. Additionally, Bitmain has faced US customs challenges, including a seizure of 10,000 ASICs in late 2024 due to ties with a sanctioned Chinese firm, resolved only in March. The move to US production raises questions about cost competitiveness compared to China, while the broader impact of geopolitics on Bitcoin mining continues to unfold.