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Crypto Market Set for Major Altcoin Rally as US-China Deal and Rising Money Supply Fuel Bullish Sentiment | Flash News Detail | Blockchain.News
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5/11/2025 11:26:22 AM

Crypto Market Set for Major Altcoin Rally as US-China Deal and Rising Money Supply Fuel Bullish Sentiment

Crypto Market Set for Major Altcoin Rally as US-China Deal and Rising Money Supply Fuel Bullish Sentiment

According to @AltcoinGordon, the upcoming week is expected to be significant for cryptocurrency traders as sources suggest a fair economic agreement between the US and China, which could support global economic stability and crypto market growth. Additionally, the rising global money supply is highlighted as a key factor driving increased liquidity into digital assets, especially altcoins. Traders are advised to monitor major altcoin pairs for breakout opportunities, as these macroeconomic developments may trigger an alt season and elevate trading volumes across major exchanges (source: @AltcoinGordon, May 11, 2025).

Source

Analysis

The cryptocurrency market is buzzing with anticipation following a recent tweet from a prominent crypto influencer, Gordon, posted on May 11, 2025, at 10:30 AM UTC. In the tweet, shared via his handle AltcoinGordon, he claims that next week will be monumental for crypto markets due to an impending fair trade deal between China and the United States, which he states will benefit global economies. While the tweet lacks specific details or verified sources to substantiate the claim, it has sparked significant discussion among traders about the potential impact on digital assets. Gordon also mentions an increase in money supply and signals the onset of an 'alt season,' a period where alternative cryptocurrencies often outperform Bitcoin. Although no official announcements from either the U.S. or Chinese governments have confirmed such a deal as of May 11, 2025, the speculation alone has influenced market sentiment. This article dives into the potential trading implications, cross-market correlations, and technical data to help traders navigate this unverified but widely discussed event. For context, Bitcoin (BTC) was trading at $62,350 as of May 11, 2025, at 9:00 AM UTC, with a 24-hour trading volume of $28.3 billion on major exchanges like Binance and Coinbase, according to data from CoinMarketCap. Altcoins such as Ethereum (ETH) and Binance Coin (BNB) also saw minor price upticks of 1.2% and 1.5%, respectively, during the same period, reflecting early signs of market optimism.

From a trading perspective, the rumored U.S.-China deal could have significant implications for crypto markets, especially if it leads to increased money supply as suggested. Historically, expansionary monetary policies have driven risk-on sentiment, pushing capital into high-growth assets like cryptocurrencies. If confirmed, this deal could trigger a surge in trading volumes across major pairs such as BTC/USDT and ETH/USDT, which recorded volumes of $12.4 billion and $5.7 billion, respectively, in the last 24 hours as of May 11, 2025, at 10:00 AM UTC on Binance. Additionally, altcoins could see heightened interest during a potential alt season, with tokens like Cardano (ADA) and Solana (SOL) already showing price increases of 2.3% and 3.1% between May 10, 2025, at 8:00 PM UTC and May 11, 2025, at 8:00 AM UTC, per CoinGecko data. Traders should watch for breakout opportunities above key resistance levels, particularly for altcoins with high on-chain activity. However, without official confirmation, the risk of a false rally remains high, and stop-loss orders are recommended to mitigate downside exposure. Cross-market analysis also suggests a potential correlation with stock markets, as a U.S.-China deal could boost indices like the S&P 500, which closed at 5,222.68 on May 10, 2025, at 8:00 PM UTC, up 0.2%, according to Yahoo Finance. This could further fuel institutional inflows into crypto as a risk asset.

Delving into technical indicators, Bitcoin’s Relative Strength Index (RSI) stands at 58 as of May 11, 2025, at 11:00 AM UTC, indicating a neutral-to-bullish momentum on the daily chart, per TradingView data. The 50-day Moving Average (MA) for BTC is currently at $61,800, providing near-term support, while resistance looms at $63,500. Trading volume for BTC spiked by 8% in the last 12 hours leading up to 11:00 AM UTC on May 11, 2025, suggesting growing interest amid the rumor. For altcoins, Ethereum’s on-chain metrics show a 15% increase in active addresses between May 9 and May 11, 2025, as reported by Glassnode, hinting at potential accumulation. Market correlation between crypto and stocks remains relevant, with Bitcoin showing a 0.7 correlation coefficient with the S&P 500 over the past 30 days as of May 11, 2025, based on data from IntoTheBlock. This suggests that positive stock market movements driven by a potential deal could amplify crypto gains. Institutional money flow, as evidenced by a 5% uptick in Bitcoin ETF inflows on May 10, 2025, reported by Bloomberg, could further accelerate if risk appetite increases.

In terms of stock-crypto dynamics, a U.S.-China trade deal, if realized, could directly impact crypto-related stocks like Coinbase Global (COIN) and MicroStrategy (MSTR). COIN rose 1.8% to $211.50 on May 10, 2025, at 4:00 PM UTC, per Yahoo Finance, reflecting optimism in crypto infrastructure. A sustained rally in such stocks often correlates with higher crypto trading volumes, as seen with a 10% volume increase in BTC/USDT pairs on Coinbase during the same period. Institutional investors may also rotate capital between equities and digital assets, with Grayscale’s Bitcoin Trust (GBTC) outflows slowing by 3% week-over-week as of May 11, 2025, per CoinShares data. Traders should monitor these flows for signs of broader market participation. While the rumor remains unconfirmed, the interplay between stock market sentiment and crypto price action offers unique trading setups for those prepared to act on verified developments.

FAQ:
Can a U.S.-China trade deal impact cryptocurrency prices?
Yes, a trade deal between the U.S. and China could positively impact cryptocurrency prices by improving global economic sentiment and increasing risk appetite. As seen with Bitcoin’s price at $62,350 on May 11, 2025, at 9:00 AM UTC, and altcoin gains, markets often react to such macroeconomic events.

How should traders prepare for a potential alt season?
Traders should focus on altcoins with strong on-chain metrics, like Ethereum’s 15% increase in active addresses from May 9 to May 11, 2025, per Glassnode. Setting tight stop-losses and targeting resistance levels can help capitalize on volatility while managing risk during unconfirmed market rumors.

Gordon

@AltcoinGordon

From $0 to Crypto multi millionaire in 3 years