The crypto market experienced a bullish stint in the wake of the US-Saudi trade deal, which resulted in Saudi Arabia’s $600-billion investment plan in the US. Crypto firm QCP’s daily insights showed this surge that even outpaced the stock market and noted Bitcoin moving to its previous all-time high (ATH).
The digital asset company’s insight also indicated that the major stock index, S&P 500, has overcome its 17% dip over the past month and is now back to the same level as at the start of the year. Furthermore, Coinbase’s entry into the S&P 500 on May 19 and the US Federal Reserve’s first interest rate cut could likely turbocharge the crypto market.
However, the US Consumer Price Index (CPI) has melted unexpectedly, meaning inflation is rising at a slower pace. This is good news for the crypto market as it will perhaps pressurize the US Fed to reduce interest rates. Consumer Price Index is an economic indicator that calculates the average change in the prices paid by consumers for goods and services.
Besides, the US and China had already agreed to significant tariff reduction in the 90-day moratorium, which led to a momentary price rally in the crypto market.
A part of the White House fact sheet read that Saudi Arabia’s commitment to invest in the US boosts the nation’s energy security, technology leadership, defense industry, and access to global infrastructure and critical minerals.
Is the market surge a momentary one?
Despite the market signaled a green light following the US-Saudi trade deal and agreement on tariff reduction, it did not signal an uptick today. At the time of reporting, the market cap was hovering at $3.29 trillion with a 2.45% dip. Moreover, Bitcoin (-1.44%), Ethereum (-3.84%), XRP (-3.6%), Solana (-5.6%), and other major coins met the red light in the past 24 hours. As these dips are relatively small, the market is less likely to decline further, unless unexpected economic factors emerge.
However, crypto YouTuber by the name Crypto Rover took to X, saying, “Ethereum is about to crash,” and “altcoin season is cancelled.”
But hours after posting that altcoin season is coming to an end, Crypto Rover emphasized that altcoins are about to make a “huge comeback”.
Earlier, several crypto analysts anticipated the rebirth of altcoin season, particularly in the context of the 90-day trade war pause declaration in April 2025. Tracy Jin, the COO of crypto exchange MEXC, shared her findings on the positive journey for altcoins. She opined that Bitcoin dominance has been nosediving, while Ethereum’s exceptional performance is gaining momentum, potentially leading to a fruitful altcoin season.
Meanwhile, Christopher Jaszczynski, aka MMCrypto, co-founder of blockchain consultancy company MMConsult, came up with his insights that Ethereum would meet a dip, pointing out the coin’s price analysis chart.
As US President Donald Trump is pushing for interest rate cuts, inflation is falling, and the consumer index is dropping, crypto analysts are bullish on the crypto market.
