Bitcoin’s $100K Stability Test: Key US Economic Indicators to Watch This Week

Bitcoin's ability to maintain its position above the $100,000 threshold is under scrutiny this week as traders await critical US economic data. The April Consumer Price Index (CPI) release on Tuesday is expected to be the primary driver of market sentiment, with China's recent 0.1% month-over-month inflation rebound providing additional global context. Analysts suggest that the CPI figures could significantly influence near-term cryptocurrency price movements. This comes amid China's monetary stimulus efforts and March's 0.4% deflation, adding layers of complexity to the macroeconomic landscape. As the crypto market braces for potential volatility, all eyes are on these pivotal indicators to gauge Bitcoin's next major move.

4 US Economic Indicators With Crypto Implications This Week

Bitcoin's stability above $100,000 faces a critical test this week as traders scrutinize key US economic data. The April Consumer Price Index (CPI) release on Tuesday dominates market sentiment, with China's modest 0.1% MoM inflation rebound adding global context.

Market participants anticipate CPI figures could dictate near-term crypto price action. The data follows China's monetary stimulus measures and March's 0.4% deflationary dip, creating cross-currents for digital asset valuations.

Bitcoin Stays Resilient While Wall Street Stumbles

Bitcoin's price surged 25% since April 2, defying declines in traditional equity markets. The cryptocurrency breached $104,000 by May 12 as the S&P 500 dipped nearly 1% during the same period. This divergence highlights Bitcoin's growing role as an uncorrelated asset during macroeconomic uncertainty.

Market observers note the rally occurred amid escalating global trade tensions, though there's no evidence of direct tariff avoidance using crypto. The asset's performance suggests investors may be viewing digital currencies as a hedge against traditional market volatility.

Altcoin Season Shows Signs of Revival as Bitcoin Dominance Dips

Market analysts are detecting early signals of a potential altcoin season resurgence as Bitcoin's dominance wanes. The altcoin season index still points to BTC leadership, but shifting momentum suggests a change may be imminent.

Swissblock analysts highlight building altcoin impulse similar to February and November 2024 rallies, noting 'First leg of Altseason incoming.' The firm's charts show the same blue momentum indicator that preceded previous altcoin surges.

Crypto analyst Benjamin Cowen corroborates this outlook, observing technical patterns that historically precede altcoin outperformance. The market's risk-on appetite has strengthened following Bitcoin's recent surge past $100K, creating favorable conditions for alternative cryptocurrencies.

US-China Tariff Reduction Could Bolster Bitcoin's Safe-Haven Appeal

The US and China have reached a temporary agreement to reduce tariffs, marking a 90-day easing of trade tensions. Beijing will lower tariffs on US goods from 125% to 10%, while Washington cuts duties on Chinese imports from 145% to 30%. This development may reinforce Bitcoin's position as a hedge for institutional investors—or trigger unexpected market reactions.

Bitcoin initially dipped ahead of the tariff announcements but later outperformed traditional equities. If the trend continues, the BTC Bull Token presale could capitalize on renewed institutional interest. Market participants are weighing whether the crypto's resilience signals broader adoption or a fleeting anomaly.

Bitcoin Breaks $105,000 as US-China Trade Truce Fuels Market Rally

Bitcoin surged past $105,000 following a temporary tariff relief agreement between the US and China, marking its highest level in weeks. The cryptocurrency peaked at $105,705 before experiencing a modest pullback, with sustained bullish momentum evident across both spot and derivatives markets.

The 90-day trade détente slashes US tariffs on Chinese imports from 145% to 30%, while China reciprocates by reducing duties on American goods from 125% to 10%. This geopolitical development triggered immediate reaction across risk assets, with crypto markets exhibiting particularly strong volatility.

Metaplanet Bitcoin Holdings Surpass El Salvador with 6,796 BTC

Metaplanet, a Japanese investment firm, has overtaken El Salvador's Bitcoin reserves by amassing 6,796 BTC. The company's aggressive accumulation strategy underscores institutional confidence in cryptocurrency as a treasury asset.

On May 12, Metaplanet disclosed a $129 million purchase of an additional 1,241 BTC. This move mirrors MicroStrategy's playbook, positioning bitcoin as a hedge against fiat currency volatility and Japan's persistent deflationary pressures.