#Gate 2025 Semi-Year Community Gala# voting is in progress! 🔥
Gate Square TOP 40 Creator Leaderboard is out
🙌 Vote to support your favorite creators: www.gate.com/activities/community-vote
Earn Votes by completing daily [Square] tasks. 30 delivered Votes = 1 lucky draw chance!
🎁 Win prizes like iPhone 16 Pro Max, Golden Bull Sculpture, Futures Voucher, and hot tokens.
The more you support, the higher your chances!
Vote to support creators now and win big!
https://www.gate.com/announcements/article/45974
Understanding 4 Catalysts That May Affect the Bitcoin and alts Market This Week
Bitcoin breaks through $119,000, market capitalization reaches 3.8 trillion dollars
Bitcoin (BTC) broke through the $119,000 mark, sending the entire crypto market capitalization soaring to a record $3.8 trillion. This historic breakthrough has led to a rapid rise in a wide range of crypto assets, including altcoins such as Stellar (XLM), Mog Coin (MOG), Story (IP), and Hedera (HBAR). However, with the upcoming release of inflation data in the US, the official start of earnings season, and the preparation of a legislative event in Congress called "Crypto Week", this bull market is likely to continue to gain momentum and may encounter some volatility.
This article will explore the four major catalysts that may impact Bitcoin and altcoins this week.
1. Inflation Data: Market Focus
This Wednesday, the United States will release the latest consumer inflation data, which is expected to show a slight increase in June inflation, primarily as the impact of President Trump's tariff policies on the economy gradually becomes apparent. Economists expect the core inflation rate to rise to 0.3%, marking the highest increase in several months, which means the annual inflation rate will rise to 2.9%.
If the inflation report is higher than expected, coupled with the recent strong U.S. non-farm payroll data, it may prompt the Federal Reserve to adopt a more hawkish monetary policy. This will reduce the likelihood of a rate cut in July and also lower the probability of a rate cut in September, which will impact high-risk assets, including cryptocurrencies. Historical data shows that when the Federal Reserve cuts rates or hints at a rate cut, such assets typically perform better.
2. Earnings Season: The Relationship Between Stock Market and Cryptocurrency
This Tuesday, the earnings season in the United States officially begins, and several high-profile Wall Street companies will release their second-quarter earnings reports, including Goldman Sachs, Blackstone, JPMorgan Chase, and Citigroup. These earnings reports have two important implications for the crypto market:
Three, Three Legislative Items: The Regulatory Outlook for Cryptocurrency
This week, the U.S. Congress will welcome a legislative trilogy called "Cryptocurrency Week," including the CLARITY Act, the GENIUS Act, and the anti-CBDC Act.
Typically, regulatory clarity is beneficial for cryptocurrency market prices.
4. The Driving Force of Cryptocurrency ETFs
Last week, another major catalyst for the crypto market was the inflow of funds into cryptocurrency ETFs such as Bitcoin, Ethereum, XRP, and Solana.
According to reports from Crypto. news, various ETFs have shown strong demand from American investors. The net inflow amount of the spot Bitcoin ETF has exceeded $2.7 billion, while the net inflow of the Ethereum ETF has also surpassed $907 million. Additionally, Teucrium's XXRP and Rex-Osprey's Staked SOL ETF have continued their strong growth momentum.
Historical data shows that increased capital inflow usually drives up the prices of Bitcoin and other altcoins.