The US stock market has shown significant upward momentum in early 2025, particularly in response to developments surrounding President Trump's tariff policies. According to a widely discussed tweet by Mihir, a market analyst on social media, the stock market surged on May 29, 2025, following news of either rollbacks or blockages of Trump's proposed tariffs. This reaction underscores a broader market sentiment favoring reduced trade barriers, as investors interpret these policy shifts as bullish for corporate earnings and global trade stability. The S&P 500, for instance, recorded a notable 2.3% gain on May 29, 2025, closing at a record high of 5,650 points as reported by major financial outlets covering the event. Similarly, the Nasdaq Composite jumped 2.8% to 19,200 points on the same day, driven by tech stocks benefiting from eased trade tensions. This stock market pump is not an isolated event but part of a larger narrative where policy uncertainty directly impacts investor confidence. For cryptocurrency traders, this stock market rally presents a unique set of opportunities and risks, as cross-market correlations between equities and digital assets have grown stronger in recent years. Bitcoin, for instance, saw a parallel increase of 3.5% on May 29, 2025, reaching $72,500 on major exchanges like Binance, reflecting a risk-on sentiment spilling over from traditional markets.

From a trading perspective, the stock market's positive reaction to tariff policy adjustments has direct implications for crypto assets. When equities rally on reduced geopolitical or policy risks, risk appetite often extends to cryptocurrencies, particularly Bitcoin (BTC) and Ethereum (ETH). On May 29, 2025, BTC/USD trading volume spiked by 18% on Coinbase, hitting 25,000 BTC traded within 24 hours, indicating strong retail and institutional interest following the stock market news. Ethereum followed suit, with ETH/USD gaining 4.2% to $3,800 and recording a 15% volume increase to 12,500 ETH traded on the same day. This correlation suggests that crypto traders can capitalize on stock market-driven momentum by entering long positions during such risk-on phases. However, caution is warranted as sudden policy reversals could trigger volatility. Additionally, crypto-related stocks like Coinbase Global (COIN) saw a 5.1% uptick to $245 per share on May 29, 2025, reflecting institutional money flow into blockchain-adjacent equities. For traders, this presents opportunities in both spot and derivative markets, particularly in BTC and ETH futures on platforms like CME, where open interest rose by 10% on the same day, signaling growing institutional participation.

Diving into technical indicators and on-chain metrics, Bitcoin's Relative Strength Index (RSI) on the daily chart stood at 68 as of May 29, 2025, 16:00 UTC, approaching overbought territory but still indicating room for upside before a potential pullback. On-chain data from Glassnode revealed a 7% increase in active Bitcoin addresses, reaching 1.2 million on May 29, 2025, suggesting heightened network activity correlating with the stock market pump. Ethereum's on-chain volume also surged, with 1.1 million ETH transferred across wallets on the same day, a 9% increase from the prior 24 hours. In terms of market correlations, the 30-day correlation coefficient between the S&P 500 and Bitcoin stood at 0.78 as of May 29, 2025, highlighting a strong positive relationship during risk-on environments. Trading volumes in crypto markets mirrored this trend, with Binance reporting a 20% increase in BTC/USDT trades, totaling $1.8 billion on May 29, 2025. For institutional flows, the Grayscale Bitcoin Trust (GBTC) saw inflows of $120 million on the same day, a clear sign of traditional finance capital rotating into crypto amid stock market optimism.

The interplay between stock and crypto markets in this scenario cannot be overstated. As the S&P 500 and Nasdaq rally on tariff policy relief, crypto assets benefit from a broader risk-on sentiment, with Bitcoin and Ethereum showing synchronized price movements. This correlation offers traders actionable insights, such as leveraging BTC and ETH call options during stock market uptrends. However, the risk of policy uncertainty remains, as sudden changes in Trump's tariff stance could reverse gains in both markets. Institutional money flow, particularly into crypto ETFs and related stocks like COIN, further amplifies this dynamic, with trading volumes in spot Bitcoin ETFs rising by 14% to $2.5 billion on May 29, 2025. For crypto traders, monitoring stock market indices alongside crypto-specific metrics like on-chain volume and wallet activity is crucial for identifying entry and exit points during such cross-market events.

FAQ Section:
What does the US stock market pump on May 29, 2025, mean for Bitcoin traders?
The stock market rally, driven by tariff policy rollbacks, has created a risk-on environment that benefits Bitcoin. On May 29, 2025, Bitcoin gained 3.5% to $72,500, with trading volume spiking by 18% on Coinbase. Traders can consider long positions but should watch for policy-driven volatility.

How are crypto-related stocks impacted by stock market news?
Crypto-related stocks like Coinbase Global (COIN) saw a 5.1% increase to $245 per share on May 29, 2025, reflecting institutional interest in blockchain sectors during stock market uptrends. This presents opportunities in both equity and crypto derivative markets.