Altcoins Rally as Bitcoin Clears $109K, Traders Focus on Upcoming CPI Data
Bitcoin’s breakout above $109,000 sparked a broad upswing across crypto markets on Tuesday, with altcoins rallying as investors positioned themselves ahead of key U.S. inflation data due later this week.
Ether (ETH) surged 7% in 24 hours, leading the charge among major tokens, while Dogecoin (DOGE) and Cardano (ADA) each advanced more than 5%, trading around $0.19 and $0.43, respectively, as of Asia afternoon trading. The CoinDesk 20 Index rose 4%, pushing total crypto market capitalization up over 3%.
The gains came amid improved sentiment surrounding U.S.-China trade negotiations and growing optimism about regulatory progress, including greenlights for new crypto ETFs by the SEC.
“Bitcoin’s move toward $110K coincides with renewed trade dialogue and ETF approvals, fueling a fresh wave of optimism,” said Augustine Fan, Head of Insights at SignalPlus. “This momentum is drawing in both institutional and retail capital as innovation and returns make crypto increasingly attractive.”
Some analysts suggest the rebound is a correction after recent overreactions to political headlines.
“Markets likely overreacted to last week’s Trump-Musk tension,” said Kay Lu, CEO of HashKey Eco Labs. “Now that the noise is fading, strong fundamentals are reasserting themselves. Wednesday’s CPI release could be a major trigger.”
Still, others caution that the current rally may not follow past patterns.
“The way investors access crypto is evolving,” noted Jeff Mei, COO at BTSE. “With ETFs, corporate holdings, and stablecoin infrastructure expanding, this cycle is far more complex than previous ones.”
Nick Ruck, Director at LVRG Research, echoed the broader implications of Bitcoin’s recent strength.
“Bitcoin holding above $109K despite geopolitical pressure shows its maturing role as a macro asset,” he said. “ETF flows have reignited mainstream interest in the space.”
With inflation data and macroeconomic updates on deck, markets now turn to see whether crypto can maintain its momentum—or face renewed turbulence.
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