The cryptocurrency market as a whole has been rising sharply over the past three days due to several optimistic factors, including positive U.S. job reports and the restart of trade negotiations between the U.S. and China. This has created a recovery path after the flash crash on Thursday.
However, this optimism is forecasted not to last long as major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Ripple's XRP are facing serious risks this week and could see a repeat of Thursday, June 5.
These results are anticipated as the U.S.-China trade talks take place on Monday in London, which are considered a highly volatile catalyst that could trigger significant fluctuations.
Another important factor to watch is the CPI data on Wednesday, which is very crucial for market sentiment.
A Bloomberg survey indicates that inflation is likely to spike in May due to tariffs. If the report shows a higher number than expected, it could trigger a bearish move, dampening cryptocurrency market sentiment by indicating a slowdown in consumer spending.
Conversely, if the CPI is lower than expected, this could lead to significant gains for major cryptocurrencies and altcoins.
Will Bitcoin's Price This Week Reach 112,000 USD?
The price of Bitcoin is trading at 107,663 dollars and is recovering after being supported by the dynamic 50-day EMA band. The price has broken through the short-term downtrend and is heading straight for the 112,000 dollar mark.
If the uptrend continues and the upcoming CPI reports from the U.S. are supportive, then the ATH may be within reach. Many experts are hoping for a slight decrease in inflation, as the current uptrend seems strong and it appears that Bitcoin has not yet stopped.
However, the Trinflation foundation emphasizes that inflation may be rising, as in May, inflation started at 1.35% and by the end of the month was at 2.06%. If the CPI is similar to the forecast data, then the current uptrend may only exist for a short time and is at risk of dropping to around 100,000 dollars or even down to 95,000 dollars.
Additionally, on-chain data shows a concerning trend: small wallets holding up to 1 BTC have been accumulating strongly. Traditionally, when 'small fish' holders buy with confidence, it often implies that whales may be preparing to sell into that liquidity. This retail FOMO is seen by many as a serious warning sign that a sell-off may be imminent.
How Will XRP and ETH Perform This Week?
Over the past three days, the rise in Bitcoin’s price has also propelled the prices of altcoins. Even XRP and Ethereum increased by 8% and 6% respectively.
However, the gains are not enough to break through their upper limits; the prices of XRP and ETH are facing significant barriers. If the CPI rises higher, then the prices of both altcoins are likely to decrease, but if the CPI decreases slightly, it could be a short-term catalyst to break through their nearest barriers.
If the price of XRP increases, then the target for this week is 2.65 dollars, while the price of Ethereum is 3066 dollars. On the negative side, XRP could drop to 1.80 dollars and ETH could fall to 2000 dollars.
