Markets on Alert as U.S. Economic Data and Trade Talks Shape Crypto Momentum

Crypto Markets Hold Steady Amid Trade Developments

Crypto markets started the week on a firm footing as investors monitored trade discussions between the United States and China. Although no official agreement emerged from the weekend talks, U.S. Treasury Secretary Scott Bessent described the meetings as “productive,” promising more details soon. President Trump’s list of around 20 countries prioritized for new trade negotiations — including Japan, Vietnam, and South Korea — added further attention to the global trade landscape.

The Federal Reserve’s decision to keep interest rates unchanged last week emphasized a cautious stance amid tariff-driven uncertainty. This has left traders focused on the upcoming wave of economic indicators for clues on future monetary policy moves.

Inflation, Retail Spending, and Sentiment Reports in Focus

Tuesday’s release of April’s Consumer Price Index (CPI), excluding food and energy, will be closely watched. As one of the Fed’s preferred inflation metrics, the CPI often shapes expectations for rate policy. Thursday follows with the Producer Price Index (PPI), offering a view into production costs, and the Retail Sales report, highlighting consumer demand.

By Friday, attention will shift to the University of Michigan’s Consumer Sentiment Index and preliminary inflation expectations, providing insights into household confidence and long-term price outlooks. Any surprising weakness in these reports could unsettle both traditional and digital asset markets.

Crypto Rally Pauses at Key Resistance Levels

The total crypto market cap was slightly lower at $3.45 trillion during Monday’s Asian session, but remained close to recent highs. Bitcoin briefly neared $105,000 over the weekend and was trading around $104,000 — just 4.4% shy of its all-time peak — showing an 11% weekly gain.

Ethereum continued its breakout, jumping over 40% in the past seven days. It reached as high as $2,600 before retreating to $2,525. Altcoins also rallied, though momentum showed signs of slowing with investors eyeing macroeconomic updates.

This week’s data could prove pivotal in shaping the next leg of crypto’s trend.

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