Crypto Price Watch: 3 Key Catalysts That Could Impact Bitcoin and Altcoins

• Bitcoin and Ethereum jumped sharply, helping push the total crypto market value above the $3.2 trillion mark.
• US-China trade optimism and the upcoming CPI report alert crypto traders for policy shift signals.

Bitcoin rose above $105,600 during the past week, reaching levels near its all-time high. Ethereum trended in line with it, breaking out of a holding pattern and rising from $1,800 to $2,500. The price surge pushed the overall crypto market cap above $3.2 trillion. Altcoins surged on decreased economic concerns and investor optimism.

One of the most important developments driving the market has been the positive sentiments surrounding US-China trade talks. The talks in Switzerland did not yield any immediate conclusions, yet President Trump told of “great progress,” although additional details were left unpublicized. Further, official Chinese media expressed a more cautious stance by making it clear Beijing would refuse any terms that would lose fairness or its country’s interests.

A favorable result in the trade talks has the ability to save the economy from recession risks. Market experts also opine that a settlement could cap inflation pressure to open up room for the Federal Reserve to loosen policy ahead of time. The Fed last week retained its benchmark interest rate at 4.5% and maintained its cautious demeanor, waiting for stronger signals from the economy before it makes any changes.

CPI Report Drops Wednesday—Will Inflation Hit 2.5%?

The attention now begins to turn to the US Bureau of Labor Statistics, which publishes the April Consumer Price Index (CPI) report on Wednesday. The expectations are for headline CPI to rise marginally to 2.5% in April from 2.4% in March. The core CPI excluding food and energy prices is expected to remain at 2.8%.

The inflation data tend to influence the Federal Reserve policy. The Fed might grow more certain of rate reductions if it is a weaker-than-expected read because it has historically been a positive catalyst for cryptocurrencies. Goldman Sachs’ forecast is that US inflation will increase further in the year ahead and could hit 3.8% by year-end.

The recent crypto market surge has usually been attributed to changes in U.S. economic data. With swelling inflation pressure, some perceive digital assets as a hedge when inflation pressure increases and expectations of falling rates typically pull money towards high-risk plays such as Bitcoin and altcoins.

Toronto Hosts Major Crypto Gathering

The next key event on the crypto traders’ calendar will come in the form of the Consensus 2025 conference in Toronto. Featuring some prominent names like Cardano’s Charles Hoskinson, Chainlink’s Sergey Nazarov, Robert Hines, Eric Trump, and Anthony Scaramucci, the event is seen to attract both retail and institutional attendees with keen interest.

Toronto has a distinctive role to play in crypto assets as it is the location of the world’s first Bitcoin and Ethereum ETFs. As the third-largest tech hub and second-largest financial center in all of North America, Toronto provides a stage for many important announcements within the crypto market. In the past, Consensus has been the reason for positive sentiments, particularly when news about new collaborations or roadmaps are announced.