Bitcoin drops below the psychological $70,000 level. The US stock indices hit new record highs

The major US stock indices continued to rise. By the end of the session, the Dow Jones (US30) gained 0.45%, the S&P 500 (US500) increased 0.13%, and the tech‑heavy Nasdaq (US100) closed 0.48% higher. The leading US benchmarks once again renewed their all‑time highs, with the S&P 500 closing above the symbolic 7,600‑point mark for the first time in history, while the Dow Jones Industrial Average added more than 200 points. Powerful investor optimism surrounding the artificial intelligence and semiconductor infrastructure sectors completely overshadowed the persistent geopolitical uncertainty in the Middle East.

The true sensation of the day was Marvell Technology, whose shares surged 32%. The rally was triggered by a public statement from Nvidia CEO Jensen Huang, who suggested that Marvell has a real chance of becoming the next technology company to reach a $1 trillion market capitalization. Shares of Hewlett Packard Enterprise (HPE) jumped 19% after the company sharply raised its sales and profit expectations, citing exponential growth in demand for AI‑server infrastructure.

Bitcoin (BTC/USD) posted a notable decline, falling more than 2% and dropping below the psychological $70,000 threshold – its lowest level since April 8. The market was surprised by news that Strategy Inc., known for its long‑standing aggressive accumulation of digital gold, executed a symbolic sale of roughly $2.5 million worth of Bitcoin – its first sale since late 2022. Although the amount is relatively small, the very fact that the company deviated from its pure HODL strategy sparked serious concerns about the sustainability of corporate treasury demand for digital assets. Additional pressure came from the ongoing liquidity crunch in the regulated sector: US spot Bitcoin ETFs recorded 11 consecutive sessions of net outflows, losing a total of approximately $3.45-3.5 billion.

European indices also posted solid gains yesterday. Germany’s DAX (DE40) rose 0.48%, France’s CAC 40 (FR40) closed 0.77% higher, Spain’s IBEX 35 (ES35) gained 0.48%, and the UK’s FTSE 100 (UK100) ended the session 0.33% higher. The main driver of stabilization across European markets was fresh commentary from the White House. US President Donald Trump publicly confirmed that diplomatic channels with Tehran remain open and suggested that a temporary 60‑day agreement to unblock the Strait of Hormuz could be signed as early as next week. Optimism strengthened further after confirmation that a ceasefire between Israel and Hezbollah in Lebanon had come into effect.

However, the potential for a stronger rally was limited by internal EU macroeconomic factors. Preliminary Eurostat estimates showed a further acceleration of eurozone inflation in May, driven primarily by extreme volatility in oil and gas prices. The latest release confirmed persistent price pressures in the region and reinforced market expectations that Christine Lagarde will move forward with an ECB rate hike (the probability of an increase next week exceeds 90%).

WTI crude oil prices showed elevated volatility in the $92-95 per barrel range. The commodity market shifted into consolidation mode after a powerful rally the previous day, when prices jumped 5.5% following Iran’s threat to completely shut down the Strait of Hormuz in response to escalating tensions in Lebanon. The main source of uncertainty remains the unclear prospects of a temporary peace agreement between Washington and Tehran. President Trump maintains strong optimism, stating that diplomatic contacts are progressing and that a memorandum of understanding guaranteeing the reopening of the Strait could be signed as early as next week. Meanwhile, Iranian state media present a sharply different narrative, expressing deep skepticism about any progress and accusing Washington of aiding Israeli attacks.

In Asia on Monday, Japan’s Nikkei 225 (JP225) fell 0.30%, China’s FTSE China A50 closed 2.09% higher, Hong Kong’s Hang Seng (HK50) gained 2.52%, while Australia’s ASX 200 (AU200) slipped 0.06%.

The People’s Bank of China (PBoC) officially announced its decision to completely halt reverse‑repo operations, citing the current funding needs of primary dealers within standard open‑market procedures. This move marks a historic precedent, as the Chinese regulator refrained from injecting short‑term liquidity through this tool for the first time since August 2024. The effective zeroing of reverse‑repo volumes clearly indicates that monetary authorities consider liquidity levels in the national banking system fully sufficient, eliminating the need for additional emergency injections and confirming the stability of China’s domestic financial sector.