Cryptocurrency Market Update: Three Major Factors That Could Affect Bitcoin and Other Altcoins

Bitcoin and Ethereum saw a significant increase, contributing to the total cryptocurrency market capitalization exceeding $3.2 trillion. Enthusiasm over US-China trade relations and the impending Consumer Price Index report has crypto traders on the lookout for potential signals of policy changes. In the previous week, Bitcoin surged past $3,836,000, approaching its peak value. Ethereum followed a similar trend, emerging from a consolidation phase and increasing from $1,800 to $2,500. The increase in prices raised the total market capitalization of cryptocurrencies to over $3.2 trillion. Altcoins experienced a rise due to reduced economic worries and increased investor confidence. A key factor contributing to this market movement has been the favorable attitudes regarding US-China trade negotiations. Although the discussions in Switzerland didn’t lead to any immediate outcomes, President Trump mentioned that there was “great progress,” but further specifics were not disclosed. Additionally, state-run Chinese media conveyed a more prudent position, stating that Beijing would not accept any conditions that compromise fairness or its national interests. A positive outcome from the trade discussions could help protect the economy from the threat of recession. Market analysts also believe that reaching a settlement might help alleviate inflationary pressures, potentially allowing the Federal Reserve to ease its policies sooner than expected. Last week, the Federal Reserve decided to keep its key interest rate steady at 4.5%, adopting a cautious stance while awaiting clearer indications from the economy before implementing any adjustments. The Consumer Price Index (CPI) report is set to be released on Wednesday—will inflation reach 2.5%?