According to Fox News, US President Trump and Chinese President Xi have invited each other for state visits even as trade tensions persist between the US and China (Fox News, June 5, 2025). This diplomatic move signals a potential thaw in relations, which could reduce market volatility and impact cryptocurrencies tied to global trade sentiment, such as Bitcoin and Ethereum. Historically, easing trade tensions has triggered bullish momentum in crypto markets, as traders anticipate improved liquidity and lower risk aversion. Crypto traders should closely monitor future developments, as positive diplomatic signals may drive short-term rallies in major digital assets.

According to The Kobeissi Letter, former President Trump has threatened to impose 50% tariffs on the European Union, reigniting trade war concerns (source: The Kobeissi Letter, Twitter, May 25, 2025). This move has historically triggered volatility across global equity and forex markets, often spilling over into cryptocurrency price action as investors seek alternative assets and safe havens. Traders should monitor Bitcoin and Ethereum, as previous tariff disputes have correlated with increased crypto trading volumes and price swings. The Kobeissi Letter also highlights their trading strategy performance since 2020, noting a 370% return, suggesting a focus on volatility-driven trades for the upcoming week. Crypto investors are advised to watch for breakout opportunities and heightened volatility linked to macroeconomic uncertainty and capital flows.