Bitcoin and other altcoins, such as Internet Computer (ICP), SPX6900 (SPX), Keeta (KEETA), and Dogwifhat (WIF), will have numerous catalysts that will determine their performance this week.
US Inflation Data
The first major catalyst that will impact Bitcoin and altcoins like ICP, SPX6900, Keeta, and Dogewifhat this week is the US inflation data set to be released on Wednesday. This report will also impact the forex, stock, and bond markets due to its influence on the Federal Reserve.
Economists expect the data to show that US inflation drifted upward in May as companies adjusted their prices due to Trump’s tariffs. The average estimate is that the headline Consumer Price Index (CPI) jumped from 2.3% in April to 2.5% in May.
Core inflation is expected to rise to 2.8%. If these estimates are accurate, it means that the Federal Reserve will likely opt for a wait-and-see approach before cutting rates, as Donald Trump has proposed. This, in turn, may cause Bitcoin and altcoins to decline further.
On the other hand, the continuation of the downtrend will likely revive hopes of a Fed cut, which could boost crypto prices.
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Trump and Elon Musk feud
The other top catalyst for Bitcoin and altcoins, such as SPX, ICP, Keeta, and WIF, is the relationship between Trump and Musk. This is a notable feud because Trump is the US president, while Musk is the richest man in the world and a major government contractor. The two are also big supporters of the crypto market.
Trump has said that he is not interested in mending ties with Musk as Bill Ackman has suggested. A deterioration of the relationship will be negative for the crypto industry. For example, Bitcoin and most altcoins plunged last week when the feud started. Mending of ties would do the opposite and push them higher.
US and China Trade Talks Will Impact Bitcoin and Altcoins
The other catalyst for these tokens will happen in London, where US and Chinese officials will gather to work out an agreement and repair tensions.
These talks come a week after Trump held a 90-minute call with Xi Jinping to cool the rising tensions. The US has accused China of not shipping rare earth materials, while China has accused the US of targeting its business and citizens.
Therefore, a deal between the two countries will be highly bullish on cryptocurrencies as it will lower tensions.
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