Israel Bombs Iran, Trump Urges Fed to Cut Interest Rates; BTC at 103K, Ethereum Drops Nearly 10%

06/13/2025

U.S. Stock Market Slightly Rises Amid Inflation and Unemployment Data Concerns

The U.S. stock market experienced a slight increase last night as the market focused on inflation and unemployment data while digesting President Trump’s latest remarks regarding the Federal Reserve (Fed), tariffs, and the situation in the Middle East. Meanwhile, with renewed conflicts in Israel and a significant aviation disaster involving Boeing, the company’s stock price dropped nearly 5%. Overall, all three major U.S. indexes closed higher, as the market once again bet that the Fed would initiate interest rate cuts this year. Bitcoin (BTC) fell from the 108K range to 103K, with a decline of nearly 4.8%. Ethereum (ETH) dropped to $2,498, a decrease of nearly 10%.

Trump Urges Trade Allies to Accept Tariff Conditions, Calls for Quick Rate Cuts from the Fed

On Wednesday (June 11) Taiwan time, Trump reiterated his call for trade allies to accept the U.S. unilateral tariff rates, stating, “If you don’t accept, then forget it.” On Thursday (June 12), he publicly urged the Fed to lower interest rates again, directly labeling Fed Chairman Jerome Powell as a “moron,” adding that he would not fire him.

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Inflation and Unemployment Data Released, Market Expects Increased Rate Cut Probability

The U.S. Producer Price Index (PPI) year-on-year growth rate for May was 2.6%, with a month-on-month growth rate of 0.1%, both lower than market expectations, indicating that inflationary pressures continue to ease. However, the U.S. job market has shown signs of weakness:

Initial jobless claims reported 248,000: higher than expected
Continuing jobless claims stood at 1.956 million: higher than prior value

This has led to an increased expectation in the market that the Fed will cut rates twice, driving renewed interest in the bond market and pushing U.S. Treasury yields down. The demand for U.S. 30-year bonds at auction increased.

Boeing Faces Another Major Aviation Disaster Amid Renewed Israel-Iran Conflict

In the past five years, Boeing has experienced two fatal aviation disasters and one incident of a door detachment. Recently, a Boeing 787 crashed shortly after taking off from Sardar Vallabhbhai Patel International Airport in India at 1:38 PM local time, resulting in over 290 fatalities, with only one survivor. Following the news, Boeing (BA-US) shares dropped 4.79%, closing at $203.74 per share.

U.S. President Donald Trump warned during a press conference on June 11 Taiwan time that personnel and military families stationed in the Middle East are currently evacuating from Israel, stating, “It’s very dangerous over there, just wait and see.” Subsequently, Israel launched airstrikes against Iran early Friday morning, targeting Iranian nuclear program facilities.

Bitcoin Drops to 103K Range, Ethereum Declines Nearly 10%

Bitcoin (BTC) fell from yesterday’s peak of $108,813 to $102,664, then rebounded to the 103K range, marking a decline of nearly 4.8%. Ethereum (ETH) dropped from its highest price of $2,783 to as low as $2,450, experiencing a drop of nearly 10%.

The highly anticipated U.S. stablecoin legislation, the GENIUS Act, passed a procedural vote in the Senate on June 11 Eastern Time and is set to enter the deliberation stage. If passed, it is expected to bring positive developments to the cryptocurrency market.

(GENIUS Act Enters Substantive Review! U.S. Treasury Secretary Praises: Stablecoin Market to Surpass $2 Trillion in Three Years)

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile, leading to the potential loss of your entire principal. Please assess risks carefully.