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In recent days, we discussed that King cryptocurrency was on its way to a new ATH, with resistance testing paving the way for a genuine breakout just hours before reaching the peak. However, much more is needed as altcoins are just beginning to gain momentum. What are the insights we can draw from recent U.S. data?
U.S. PMI Data
The U.S. PMI data was recently released, highlighting its significance in reflecting the impact of tariffs. The most critical detail in the S&P PMI report is the unprecedented increase in average prices since August 2022, noted in May. As it was an initial data release, we witnessed the numbers showing the influence of tariffs and agreements.
The data that measures growth in the related economic areas came below expectations. The Services PMI was reported at 50.8 against an expectation of 51.2. The Composite PMI also missed expectations, coming in at 50.6 against a forecast of 51.2. Manufacturing was reported at 50.2 compared to an expectation of 50.5. A figure below 50 indicates contraction, clearly showing that PMI data points to tariffs being detrimental to the economy.
The Federal Reserve (Fed), while indicating reluctance in reducing interest rates quickly, anticipated the challenging nature of delayed effects. The Fed is likely to act in the coming months as clearer effects emerge, aiming to play its cards right. As inflation significantly drops and the delayed impact of tariffs on growth becomes apparent, swift rate cuts are expected as the balance tips.
Cryptocurrencies
Global stock markets are recovering as the wave of treasury bond sales subsides. According to Binance TR data, BTC is priced at $111,150, peaking at $1111,880 daily. AVAX ranks as one of the top gainers among its peers, targeting $27.
ETH hasn’t yet initiated the desired uptrend, and the recovery in the ETHBTC pair has temporarily paused. BTC is likely heading toward a new high at $120,000, providing altcoins the opportunity for a rally. In the meantime, altcoin investors are closely watching the ETH chart, as BTCD relaxation triggers targets over $2,700 and potentially up to $3,500 for ETH and its followers.
The total market cap of cryptocurrencies stands at $3.5 trillion, with volume surpassing $200 billion and BTCD at 63%.
