Just as the turmoil seemed to settle, Donald Trump took center stage, bringing new complexities to the landscape. The crypto market, poised for a potential surge, finds itself hindered by the persistent issue of tariffs. Inflation and consumer sentiment are beginning to recover, but the critical question remains: what do experts say about the future of cryptocurrencies in light of recent data?
U.S. Inflation Expectations
Following the release of the PCE data today, all eyes were on Michigan’s expectations. The data was relatively positive for risk markets, yet the significant rebound in cryptocurrencies was absent, as today’s results did not reflect the past 24 hours’ events.
The Michigan sentiment index was announced at 52.2, surpassing the previous month’s 50.8 and the expected 51.5. Recently, we discussed the rapid recovery of the CB Consumer Confidence index, primarily connected to the Geneva agreement a few weeks back. However, as Trump pointed fingers at China again, warning of a breach of the agreement, concerns might be resurfacing.
The one-year inflation expectation dropped from 7.3% previously to 6.6%, below the anticipated 7.1%. This shift, especially when combined with today’s PCE data, supports potential interest rate cuts, provided the tariff tensions do not escalate intentionally.
Furthermore, the five-year inflation projection fell significantly from the previous month, recorded at 4.2% against a 4.6% expectation. Later tonight, Trump and Elon Musk are slated to speak at 20:30, followed by Fed statements from Daly at 23:45, considering today’s data.
Trump is expected to make new announcements at midnight, likely focusing on tariffs.
Cryptocurrency Chart Analysis
According to Carl Moon, Bitcoin (BTC) 
$77,690 needs to break free from its current triangle pattern to avoid further losses. The projected drop for BTC over the weekend is to $102,800, with BTC trading just $3,000 above this point as of the time of writing. Such a deep decline could spell trouble for altcoins.
For altcoins, the focus should be on the ETH chart, as highlighted by Poppe.
“ETH surpassed $2,700 but quickly failed. This isn’t a crucial level. What’s vital is its preparation for a significant breakout. When might this occur? Liquidity is above $2,850, and the longer a breakout takes, the more intense it will be.”
