Over the past week, global markets underwent a rapid shift from pricing in monetary easing to embracing a “higher-for-longer” interest rate outlook. May nonfarm payrolls significantly exceeded market expectations, prompting investors to scale back expectations for Federal Reserve rate cuts. Treasury yields climbed back above 4.5%, weighing broadly on risk assets. The crypto market experienced a sharp correction alongside traditional markets, with BTC falling approximately 15% and ETH declining around 22% during the week. Total crypto market capitalization shed more than $300 billion, while market sentiment briefly dropped into the “Extreme Fear” zone.
Key Highlights from Last Week:
- Market Focus: Nonfarm payrolls came in well above expectations, leading markets to reprice the Federal Reserve’s policy path. The “higher-for-longer” rate environment became the primary external driver behind the latest crypto market selloff.
- Liquidity Analysis: BTC and ETH ETFs reached a short-term inflection point on June 5 after multiple consecutive weeks of net outflows. TradFi Perp DEX trading volume remained elevated, with commodities continuing to dominate activity. Following the launch of Gate’s stock trading service, the number of tradable assets more than doubled from initial launch levels.
- On-Chain Insights: DEX activity rebounded noticeably, with trading volumes increasing across major protocols including Uniswap, PancakeSwap, and Aerodrome. Stablecoin supply declined modestly, the LST sector continued to cool, and Aave lending balances moved lower, while new demand increasingly flowed toward emerging ecosystems such as MegaETH.
- Derivatives Tracking: BTC open interest declined by more than 15% during the week, reflecting a significant deleveraging process. 25D Skew fell into deeply negative territory, while DVOL briefly rose to the 52–54 range, indicating a sharp increase in demand for short-term downside protection.
- Institutional Updates: Gate spot trading volume increased 92.16% week-over-week, with institutional spot participation continuing to rise. CrossEx trading volume grew 47.1% week-over-week. The launch of the CFD API further strengthened institutional trading and asset management infrastructure.
- Outlook for This Week: Markets will focus on May CPI data and its implications for Federal Reserve policy expectations, as well as whether ETF fund flows show signs of sustained improvement.
Discover more details today → Gate Institutional Weekly: Crypto Market Loses Over $300B in a Week, Gate Institutional Spot Volume Surges 92.16% (June 1–7, 2026)
Gate Research is a comprehensive blockchain and cryptocurrency research platform that provides deep content for readers, including technical analysis, market insights, industry research, trend forecasting, and macroeconomic policy analysis.
Disclaimer
Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such decisions.
Gate Team
June 10, 2026
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