Crypto markets surged on Wednesday, buoyed by a dovish CPI print and US President Donald Trump’s confirmation of a long-awaited US-China trade deal.
The Bitcoin price momentarily climbed above $110,000, continuing to battle with this key resistance level. However, altcoins are already soaring, with the Ethereum price breaking through the $2750 resistance and spiking to $2880, before a minor pullback.
Solana meme coins continue to take the centre stage, with SPX6900 and Fartcoin still among the top performers. Utility coins like Hyperliquid, Virtuals Protocol and Arbitrum are also showing significant bullish strength.
The risk-on mood has returned decisively, with bull market euphoria gaining momentum after today’s twin tailwinds: cooling inflation and easing US-China trade tensions.
Trump Calls For Full Point Rate Cut Following Dovish CPI Print
The US Consumer Price Index came in cooler than expected on Wednesday — a result likely welcomed by the Fed.
The headline CPI figure came out at 2.4%, lower than the 2.5% market consensus. The core CPI, which excludes food and energy prices, increases by 2.8% annually, below forecasts of a 2.9% reading.
US President Donald Trump was quick to take credit for the positive CPI print while continuing to admonish the Federal Reserve, particularly Chair Jerome Powell, for keeping the Federal target rate unchanged.
Trump urged the Federal Reserve to slash interest rates by 100 basis points, calling the move “so important.”
Despite the President’s urges, the CME FedWatch isn’t pricing in any rate cut in next week’s FOMC meeting. The base case for this year remains two 25 bps rate cuts in Q3 and Q4. After all, both CPI and core CPI readings have increased by 0.1 MoM, despite being below the market’s expectations.
However, the US financial and crypto markets don’t appear to need a dovish Fed to continue their bull markets. The global M2 money supply is continuing to surge, an indicator with a strong correlation to Bitcoin.
Global Macro Investor’s Julian Bittel’s global liquidity model suggests that the BTC price could hit $160,000 in 2025.
US-China Trade Deal Creates Risk-On Environment
In another major bullish news for the financial markets, President Trump announced that a US-China deal is done, subject to his and Chinese President Xi Jinping’s approval.
As per the initial reported details, China will resume its supply of the rare earth metals to the US, in exchange for the US allowing Chinese students to study in its elite institutions.
However, the deal’s tariff figures remain murky. In an X post, Trump claimed that the US will now levy 55% duties on Chinese exports, which would be up from the current 30% agreement.
Nevertheless, the crypto market is taking Trump’s confidence and optimism at face value. The Bitcoin price rallied to $110,000 before a pullback to retest $108k, while the altcoins are faring even better.
Several crypto assets are sitting at key resistance levels, which could result in a broader market breakout.
Best Coins to Invest In
The crypto market is showing signs of a brewing “altseason”. The ETHBTC trading pair has broken out of a symmetrical triangle.
The Ethereum price has also breached the $2750 resistance, now trading at $2760 at press time.
Ethereum ecosystem coins, including the Virtuals Protocol, Polygon, Arbitrum and Ethereum Name Service, are now among the best altcoins to buy now.
Solana meme coins continue to be among the top performers, with Fartcoin and SPX6900 leading the charge.
The bull market euphoria is taking hold once again, providing the perfect backdrop for new meme coin launches. For instance, prominent influencers are calling Solaxy (SOLX), a new Solana meme coin launching next week, the next 100x crypto.
The SOLX presale has already raised above $47.5 million in short order, thanks to a plethora of six-figure investments from whales. With the presale ending on June 16th, heavy FOMO buying is ongoing, and the $50 million target is achievable.
Besides being a meme coin, Solaxy is also the first prominent Solana layer-2 scaling solution, powered by ZK rollups, a Hyperlane-powered multi-chain bridge and a deterministic sequencer.
The project is also launching a competitor to Pump.Fun, called the Igniter Protocol. SOLX holders will now be able to launch their meme coins on the cutting-edge Solaxy DEX.
The Solaxy Testnet is already live, and the chain will become fully operational in June. Sidelined investors now have less than 5 days to buy SOLX early and not leave attractive gains on the table.
Visit Solaxy Presale
This article has been provided by one of our commercial partners and does not reflect Cryptonomist’s opinion. Please be aware our commercial partners may use affiliate programs to generate revenues through the links on this article.
