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Altcoins Cool After 40% Surge; Ripple Jumps Over 7%, Hedera Gains 3.8%.

Optimism is once again sweeping through the crypto market, fueled by a tariff agreement between the world’s two largest economies and anticipation of favorable inflation data in the U.S. Bitcoin climbed to a nearly four-month high, briefly surpassing $105,000 before trimming gains and falling nearly 2% to around $102,000, according to Binance. Ethereum is trading at approximately $2,400.

Several altcoins, which had posted gains of up to 40%, have paused their rally. However, Ripple stands out with a gain of over 7%, while Hedera is up 3.8%. On the flip side, Hedera, Chainlink (-2.2%), and Hyperliquid (-1.8%) are among those retreating by as much as 2.6%.

The renewed appetite for risk in the crypto space is largely attributed to easing trade tensions between the U.S. and China. Both nations agreed to a temporary 90-day mutual tariff reduction totaling 115%. The U.S. will lower its tariffs from 145% to 30%, while China will cut its duties from 125% to 10%, as confirmed in a joint statement following negotiations in Switzerland.

Macro Outlook: Inflation as the Next Catalyst

The trade deal comes at a critical juncture, with investors closely monitoring macroeconomic developments. Attention this week turns to Tuesday’s release of the U.S. Consumer Price Index (CPI) for April. Forecasts suggest a year-over-year slowdown to 2.3%, which could strengthen the perception that inflation is easing.

If CPI data meets expectations, it may serve as a catalyst for Bitcoin to reach new all-time highs—provided no new trade tensions emerge.

Fed Remains Cautious, but Liquidity Supports the Market

Despite the bullish sentiment, the Federal Reserve remains cautious. After holding rates steady in April, Fed Chair Jerome Powell warned that rate cuts are not guaranteed and that more time is needed to assess the economic impact of tariffs.

Still, liquidity remains a key driver. The U.S. Treasury continues injecting dollars into the financial system, while Bitcoin supply on exchanges has dropped to a seven-year low. This environment supports further gains, although the margin for error remains narrow.