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Bitcoin (BTC) surged past $110,000 following positive indicators from London regarding the US-China trade discussions but has since stabilized. As the CoinDesk 20 index increased by 2%, traders appear to be moving towards altcoins.

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One reason for Bitcoin’s subdued performance and the shift towards altcoins may be the fact that the agreement is still not finalized and requires confirmation from both leaders, Trump and Xi.

Traditional markets exhibited mixed reactions. Asian stocks, particularly the Hang Seng, rose by 0.8%, while European markets showed slight gains and US index futures indicated a downturn.

“Numerous fluctuations have occurred, and the markets are adapting to the ongoing uncertainty,” noted Deutsche Bank strategist Jim Reid.

Meanwhile, investors are gearing up for upcoming inflation statistics, with the US Consumer Price Index (CPI) report expected to indicate a 0.3% increase in core inflation for May and an annual rise to 2.9%. Tomorrow’s producer price data is anticipated to also reflect a rise.

Among altcoins, Ether (ETH) is maintaining steady but significant gains. Recent options market activity suggests traders are bullish, as front-end volatility has increased with greater interest in call options, according to analysts at QCP Capital.

With $450 million in Ether ETF inflows recorded this month, there’s growing momentum among investors, driven by Ethereum’s expanding role as a platform for real-world asset tokenization.

Looking forward, macroeconomic trends seem favorable for ETH. Analysts at QCP Capital observe, “With the GENIUS Act moving forward in the US Senate, and increasing regulatory traction for stablecoins, Ethereum’s integral function in tokenization and transaction systems could see significant growth.”

Nevertheless, all eyes are on the CPI report, as a more aggressive inflation metric could indicate persistent inflationary pressures in the coming months, which may hinder the prospects for a Federal Reserve interest-rate reduction, potentially driving investors back to safe-haven assets like gold.

Should the CPI data turn out to be more favorable, it might create conditions for risk assets like crypto to increase their gains. Stay alert!