The broader cryptocurrency market is on a rising spree over the last three days due to several optimistic factors, including positive US jobs report and a fresh restart of trade talks between the US and China. This has created a recovery path from the Thursday flash crash.
However, this optimism is forecasted to have a short life, as the big shot cryptos like Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP are at a grave risk this week that could display similar movements like Thursday, June 5th.
These outcomes are forecasted as the US-China trade talks on Monday in London, which is seen as a highly volatile catalyst, with the potential to cause sharp movements.
Another most critical factor to watch is Wednesday’s CPI data, which is crucial for market sentiment.
A Bloomberg survey suggests that inflation likely spiked in May due to tariffs. If the report shows a higher-than-expected number, it could trigger a bearish move, dampening crypto market sentiment by indicating a slowdown in consumer spending.
Conversely, if the CPI comes in lower than expected, it could lead to significant gains for top cryptocurrencies and altcoins.
Is $112K Coming In Bitcoin Price This Week?
The Bitcoin price is exchanging hands at $107663, and it is recovering after it took support from the dynamic 50-day EMA band. It has broken the short-term declining trendline and is headed straight for the $112K mark.
If the momentum continues and upcoming US CPI reports join in favour, then an ATH could be on its plate. Many experts are hoping for inflation to print soft, as the ongoing momentum looks strong and seems Bitcoin is not done yet.
However, the platform Truflation highlights that inflation may be picking up, as in May it began with 1.35% and by month end it was 2.06%. If CPI prints similar to what the data’s are projecting, then the ongoing momentum could be short-lived and could risk falling around $100K or even to $95K.
Additionally, on-chain data revealed a concerning trend: the Small wallets, holding up to 1 BTC, have been accumulating strongly. Historically, when the “small fish” holders buy with conviction, it often hints that whales could be preparing to sell into that liquidity. This retail fomo is considered by many as a fatal warning sign that a sell-off could be on its way.
How XRP And ETH are Expected To Perform This Week?
In the last three days, the Bitcoin price advancement has boosted altcoin’s prices too. Even XRP and Ethereum have risen 8% and 6% respectively.
However, the gains are not enough to clear their bounded range; the XRP and ETH prices are facing key hurdles. If the CPI comes higher, then a fall in both altcoin prices seems likely, but if CPI comes soft then it could be a short-term catalyst to clear their nearest hurdles.
If XRP price manages to rise, then $2.65 is this week’s target, and for Ethereum price, it is at $3066. On the downside, XRP could fall to $1.80, and ETH towards $2000, respectively.
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