Anticipated occurrences potentially shaping the cryptocurrency market throughout the upcoming week:
Next week, a brief but vital stream of economic data is anticipated from May 26 to 30. This data could provoke volatility in financial markets, particularly among growth and inflation indicators.
Monday will see the U.S. stock market closed for Memorial Day; however, data releases starting on Tuesday could affect all markets, including crypto.
Last week, President Donald Trump's stern statements aimed at the European Union and smartphone manufacturers rekindled trade war fears. Subsequently, tech stocks dwindled, and Bitcoin retreated from record levels. Nevertheless, on Sunday, Trump postponed tariffs on European Union products until July 9, partially alleviating trade tensions.
Highlights from next week's economic calendar are as follows:
On Tuesday, the consumer confidence index will be disclosed, offering perspectives on consumer attitudes towards the economy and their spending power.
On Wednesday, minutes from the Federal Reserve's May meeting will be published, attracting attention to any solidification of expectations for interest rate cuts.
On Thursday, the first-quarter annualized GDP growth rate will be announced, with preliminary estimates suggesting a 0.3% contraction.
On Friday, the core PCE (Personal Consumption Expenditures) inflation indicator and the University of Michigan's long-term inflation expectations will be released, along with Nvidia's financial results on Wednesday. The company's performance and focus on AI-related crypto projects will be noteworthy.
Related: 'Bitcoin ETFs Reach Yearly High: What Does It Mean?'
Crypto markets have shown movement in Asia, with Bitcoin and altcoins demonstrating an upward trend. This growth may have been stimulated by Trump's decision to postpone tariffs. As of Monday morning, Bitcoin has rebounded to around $109,500, limiting losses from its May 22 record high of $111,814. Ethereum shows signs of recovery, but its price movement has been more limited compared to Bitcoin. In the altcoin market, Solana and Cardano performed well, while Hyperliquid surged by over 14%.
[Introduced relevant Enrichment Data to provide additional insights into economic indicators and their potential impact on financial markets]
During this week, several economic data releases could shed light on the U.S. economy and influence financial markets through various channels. Positive data may boost confidence and prices, while negative data could lead to market corrections and volatility. This brief but crucial data flow offers significant opportunities for investors to assess market trends and make informed decisions.
As the economic data releases approach, investors may turn their attention to the impact of these figures on blockchain-related technologies such as cryptocurrency. The upcoming announcements, including the consumer confidence index, Federal Reserve meeting minutes, GDP growth rate, and inflation indicators, could potentially affect financing and investing decisions in the technology sector, potentially including those related to blockchain. For instance, positive data might encourage more investment in AI-related crypto projects like Nvidia, while negative data could result in volatility in the crypto market, mirroring trends observed in traditional financial markets.
