Crypto Market Pulse - June 2, 2025

LAST WEEK RECAP:

• EU Consumer Confidence Final -15.2 vs -15.2 expected
• US GDP Growth Rate QoQ 2nd
• US Core PCE MoM 0.1% as expected, YoY 2.5% as expected
• US PCE Price Index MoM 0.1% as expected, YoY 2.1% vs 2.2% expected
• US Personal Income MoM 0.8% vs 0.3% expected, Personal Spending MoM 0.2% as expected
• Michigan Consumer Sentiment 52.2 vs 51 expected, 5-year inflation expectations 4.2% vs 4.6% expected
• A federal appeals court temporarily blocked the lower court’s decision to declare Trump’s tariffs illegal, reinstating them
• Trump attacked China for “failing to adhere to an agreement,”- and Treasury Secretary Bessent said that talks with China had stalled
• Trump announced that he would double tariffs on imported steel to 50%
• Trump Media raises $2.44 billion for Bitcoin Treasury Plan
• Sharplink Gaming announces plan to raise $1 billion to purchase ETH as part of “Treasury Strategy”
• Texas passed Senate Bill 21, a measure establishing the Texas Strategic Bitcoin Reserve and Investment Act, which allows Texas to invest in Bitcoin and other cryptocurrencies. The bill will require approval by Governor Greg Abbott.

BTC WEEKLY VIEW

Last week, despite the absence of clear reversal signals, BTC began a mid-week decline, retracing back to the previous demand zone where it consolidated before the last rally. If this area marks a short-term top, we may see further downside continuation toward the 100k region after a period of sideways consolidation. Conversely, if support holds, a longer accumulation phase may be required before the next leg higher.

ETH WEEKLY VIEW

ETH has been consolidating in a sideways range. From a technical perspective, the price appears to have fully corrected and is now poised for a breakout in either direction.

ETH/BTC

ETH's relative stability is misleading—it hasn't gained strength against BTC, but rather has remained flat while BTC has pulled back. This is more about BTC's move than ETH showing real momentum. Whether this level marks a top or a base remains uncertain. We'll need to monitor BTC’s price action closely for further clues.

TOTAL3 USD MARKET STRENGTH

Last week, we noted that TOTAL3 was being compressed between a key horizontal resistance and a rising trendline support, forming a potential breakout setup. The market has since made its decision, breaking down through the trendline with clear rejection at the key level — a bearish signal. If TOTAL3 is to resume its upward trajectory, it will need to reclaim a meaningful support level and show signs of a bullish reversal. Otherwise, the market may continue lower, potentially retesting previous lows in search of stronger demand.

TOTAL3 BTC MARKET STRENGTH

The TOTAL3/BTC ratio has broken new lows, signaling continued weakness in the altcoin space relative to Bitcoin. Despite recent volatility in BTC, altcoins have failed to show any relative strength, and this breakdown confirms that capital continues to favor BTC over riskier assets.

As long as this ratio remains under pressure, altcoins are unlikely to outperform, and traders should remain selective or defensive in altcoin exposure. A reversal in this trend — ideally a reclaim of previous support levels — would be an early signal of renewed interest in altcoins, but for now, the structure remains bearish.

MARKET LEVERAGE RATIO

The Market Leverage Ratio has stabilized after last week’s recovery above the previous consolidation range. Despite some pullback in price, the ratio remains elevated compared to the local bottom but still well below levels that would suggest excessive speculative activity.

BTC OPEN INTEREST

BTC price dropped from the highs to 105k- and Open Interest plummeted along with it, with about roughly a 6B decrease as traders closed positions and reduced leverage.

BTC PERPS FUNDING

BTC perps funding reduced to below 0.005, a shift from the bullish levels of 0.01, indicating a reduction in perps longs.

BTC LONG/SHORT RATIO

Shorts have dominated for most of the week as BTC has retraced from its ATHs.

ETH OPEN INTEREST

ETH Open Interest moving in line with the price action, up with price before retracing, as prices retraced- indicating rising participation with price rally, followed by profit-taking and reduced leverage.

ETH PERPS FUNDING

Whilst funding is below 0.01, it is averaging higher around 0.008, showing that sentiment on ETH is still overall more bullish compared to BTC

ETH LONG/SHORT RATIO

Short accounts dominated most of the week, which runs contradictory to more bullish indications from the funding we saw, suggesting bullishness from the bigger accounts but bearishness on a wider number of participants.

SUMMARY

• This week started with bullish crypto-specific catalysts driving Bitcoin up to $110K and Ethereum to $2,788. However, as trade tensions escalated late in the week—with a federal court reinstating tariffs, stalled US-China talks, and steel tariffs doubling—risk sentiment weakened.
• BTC closed near $105K and ETH pulled back to around $2,500.
• While US Treasury yields eased slightly, they remain historically elevated amid ongoing fiscal deficit concerns.
• Macro data was steady but overshadowed by renewed trade policy risks.
• The key takeaway: trade dynamics continue to dominate market direction, keeping volatility high and making risk rallies in both traditional and digital assets fragile until greater clarity emerges.
  

DISCLAIMER:

The information in this report is for information purposes only and is not to be construed as investment or financial advice. All information contained herein is not a solicitation or recommendation to buy or sell digital assets or other financial products.

This post was prepared by Kairon Labs Trader Patrick Li, Travis Su, and Kenny Lee.

Edited by: Marianne Dasal