Bitcoin pushed past $87,000 early Monday, with XRP, Dogecoin, and Solana posting impressive gains exceeding 4% as the crypto market turned green. Traders are now carefully watching upcoming U.S. economic reports that could significantly impact price movements.

Despite hovering around $85,000 throughout the weekend, Bitcoin broke through resistance as investor sentiment improved. Solana emerged as the standout performer among major cryptocurrencies, climbing 5% in just 24 hours. Meanwhile, Tron’s TRX faced the steepest decline, dropping 4% and erasing much of the gains it achieved during last week’s memecoin rally.

The market’s cautious optimism comes amid reports that U.S. tariffs scheduled for April 2 might be less severe than initially feared, easing the risk-off sentiment that had dominated trading.

“Investors are remaining cautious on the upcoming price moment due to the uncertainty,” Nick Ruck, director at LVRG Research, said in a Telegram message. “This week’s U.S. economic reports on consumer confidence, personal spending, and PCE may show whether American consumers can cope with these economic changes or are preparing for less spending and more budgeting.”

These economic indicators could prove crucial for crypto markets. Strong consumer confidence typically signals economic health, potentially driving more investment into digital assets. The Personal Consumption Expenditures (PCE) report, a key inflation metric, will also be closely monitored as rising inflation could push investors toward cryptocurrencies as a hedge against dollar weakness.

However, some market analysts maintain a more bullish outlook, suggesting current prices represent an attractive entry point for medium to long-term investors.

“U.S. ‘hard’ economic data remains robust and in contrast with the soft sentiment, suggesting an over-extrapolation of the current weakness versus underlying fundamentals,” Augustine Fan, head of insights at SignalPlus, said in an email. “Macro observers have generally been more precarious in their assessments than the actual reality, and we believe that the underlying economy remains stronger than feared.”

Fan added: “Crypto markets had a similar quiet week, with prices largely rangebound and rebounding off recent lows as a mirror move of the equity action. Technically speaking, prices remain on a negative downward trend but are stabilizing around key support levels, with ETH settling at the highs of the 2022 range and the next big support level at around the 1500 area.”

Ethereum’s outlook appears less certain as the blockchain recorded one of its lowest 24-hour revenue periods in recent months, driving daily burns to an unprecedented low. Only 50 ETH was burned on Sunday, marking a record low and representing a staggering 99% decrease from the record 71,000 ETH burned on May 1, 2022.

This dramatic reduction in ETH burns reflects declining transactional activity on the Ethereum network, as users increasingly favor cheaper alternatives like Solana and Tron. The general tapering of speculative trading since late January has further contributed to this trend, with daily burns steadily falling from between 500 to 3,000 ETH earlier this year.

As traders navigate these mixed signals, this week’s economic data releases will likely determine whether the current upward momentum can be sustained or if caution will once again prevail in the crypto markets.