#May CPI Incoming#
This Wednesday, the U.S. will release May CPI data — a key test for rate cut expectations. Cleveland Fed forecasts 2.4% YoY CPI (up from 2.3%), with core CPI flat.
💬 If inflation beats expectations, will the Fed still cut in June? Will you stay on the sidelines or take early action?
#Tech Giants Eye Stablecoins#
Apple, Google, Airbnb, and X are in talks to integrate stablecoins into their payment systems, aiming to cut fees and streamline global payments. Following Circle’s IPO surge, stablecoins are quickly gaining traction across tech and finance.
💬 Could stablecoins be
Digital asset derivation company Two Prime: no longer accepting ETH lending, focusing exclusively on BTC.
On May 2, news came that the digital asset derivation company Two Prime announced that, despite achieving success with ETH, it will focus on BTC asset management and lending in the future. The statistical trading behavior, value proposition, and community culture of ETH have failed to the point that they are not worth participating in. With BTC becoming an alternative, the risk-reward of ETH is simply not reasonable. Two Prime claims that as an algorithmic trading firm, it values data over narrative. Data shows that ETH has undergone fundamental changes. Its correlation with BTC has decreased, and tail risks have significantly increased. Now, its trading style resembles that of a meme coin rather than a predictable asset. Even during the tumultuous period of Q1 2025, Bitcoin maintained its fundamental trend, while ETH experienced multiple standard deviation fluctuations. This stems from a risk-off environment and widespread selling by long-term holders of ETH. This poses challenges for algorithmic trading and ETH-backed lending, as the asset's performance is no longer predictable, even considering the high volatility expectations of the digital asset market.