As the market cycle unfolds, altcoins are trading at critical levels. In today’s update, we’ll take a closer look at the broader market landscape to assess whether momentum is shifting and what that could mean for the days ahead.

Additionally, we’ll analyze key macroeconomic factors to offer a well-rounded outlook on what’s next for altcoins.

Here’s what we’ll cover today:

Let’s dive in!

Recent economic data points to a strengthening global outlook, with several positive developments emerging in both the US and Chinese economies. The US-China tariff truce has significantly boosted market sentiment, leading to improved growth forecasts and reduced recession concerns.

Major financial institutions including Goldman Sachs, JPMorgan, ING, and Bloomberg Economics have revised their 2025 GDP growth forecasts for China upward. This optimism stems from improved export prospects following the trade agreement between the world's two largest economies.

On the inflation front, US Consumer Price Index data shows price increases coming in below expectations for April 2025, with core goods and services prices rising at modest rates. Services costs excluding housing and energy recorded their smallest annual gain in four years, suggesting inflation pressures continue to ease.

The positive macroeconomic backdrop has benefited equity markets, with major US indexes turning positive for the year. The S&P 500 and Nasdaq 100 have extended their rally following the trade agreement, recovering from significant drops in April to post modest gains for 2025.

The bond market is sending an unambiguous signal that cannot be easily dismissed by the Federal Reserve. Treasury yields are exhibiting persistent upward momentum despite concerted efforts to stabilize them.

The benchmark 10-Year Treasury yield has approached the 4.50% threshold, representing an increase of approximately 35 basis points in May alone.

The recent US-China trade negotiations and increasingly robust economic indicators have prompted market participants to recalibrate their expectations regarding monetary policy easing. These developments have effectively reduced the immediate incentive for Chair Powell to implement accommodative measures.

The political implications are significant, as interest rates remain elevated, still near cycle highs and well above levels seen before the Federal Reserve began signaling a potential policy pivot. Despite expectations for easing, financial conditions remain tight, influencing both economic sentiment and policy debate. This interest rate environment may emerge as a defining economic battleground in the coming months.

For the Trump administration, managing the trajectory of the bond market could potentially become the paramount economic priority, given its widespread implications for government financing costs, mortgage rates, and broader economic growth potential.

Now let’s dive into the part you’re really here for: the charts, key levels, trade scenarios and what’s next for crypto. 🔥 

Data-driven analysis and unparalleled market intelligence, exclusively at Sandman Research.

After crossing the $100,000 mark and reclaiming the important key level at $102,000 on Thursday, Bitcoin has so far managed to establish itself within this price range between $102,000 and $106,000.

On Monday and Tuesday, price successfully retested the $102,000 level, fulfilling the long entry opportunity mentioned in Monday’s report, and already reaching partial profit in the $104,000 consolidation area. The final profit target remains at $106,100.