Potential Factors Shaping Cryptocurrency Market Trends in the Upcoming Week
United States traditional markets will remain closed on Monday for Memorial Day, but a deluge of economic data is set to unfold throughout the rest of the week.
The trade war apprehensions resurfaced in the markets towards the end of last week, as former President Donald Trump rekindled tensions, threatening phone manufacturers and the European Union. This escalation led to a downward trend in tech stocks and cryptocurrency markets, following Bitcoin's historic high the previous week.
On Sunday, Trump agreed to defer 50% EU tariffs until July 9, momentarily easing some of the tension.
Economic Calendar for May 26 to 30
Tuesday will feature the publication of consumer confidence data. This data provides a glimpse into consumer sentiment and spending power.
The Federal Reserve will convene to discuss their May meeting minutes on Wednesday. These minutes may offer additional insight into the central bank's anticipated rate cuts. While no unexpected developments are anticipated, investors are speculating the possibility of rate adjustments in the second half of 2025.
On Thursday, the Q1 GDP Growth Annualized report is scheduled for release. This report offers more clarity on economic growth figures for the first quarter of 2025. The advance estimate showed a decrease in GDP by 0.3% on an annualized basis.
Friday will bring the release of April's Core Personal Consumption Expenditures (PCE) report. This report measures inflation based on consumer spending, excluding food and energy. PCE reports are a primary gauge of inflation for the Federal Reserve.
Additionally, preliminary readings for May's Michigan Consumer Sentiment Index Inflation Expectations are expected on Friday. These readings summarize consumer confidence and long-term inflation expectations.
The upcoming week is significant for earnings, with particular attention on Nvidia, slated to report on Wednesday. Strong performance from Nvidia could influence AI token prices.
Crypto Market Outlook
Crypto markets saw a positive trajectory during the morning trading session in Asia, following Trump's extension of the tariff deadline for Europe. The total capitalization stood at $3.56 trillion, maintaining its position within a sideways channel that formed around Bitcoin's recent lift-off.
Bitcoin has cooled since its May 22 all-time high of $111,814, falling to $107,000 on Sunday before experiencing a minor recovery. As of Monday morning, the asset had reclaimed $109,500. Ethereum slipped below $2,500 on Sunday and was making slight progress above this level at the time of writing. Despite Ethereum's sluggish price movements, most altcoins showed gains on Monday, with Solana, Cardano, and Hyperliquid posting particularly strong performances.
[1] Conference Board Consumer Confidence Index for May (2025): [Link][2] Consumer Confidence: May Upbeat on Economic Recovery (2025): [Link][3] U.S. Consumer Confidence Hits 98.0 as Consumers Remain Optimistic (2025): [Link][4] Economic Calendar (2025): [Link]
- Amidst the looming economic data release throughout the week, investors continue to monitor the cryptocurrency market, where Bitcoin's historical high led to a subsequent downward trend due to trade war apprehensions.
- The Federal Reserve's upcoming discussion on their May meeting minutes, scheduled for Wednesday, may offer insights into potential future rate cuts, a topic much debated among investors.
- Friday will see the release of the Core Personal Consumption Expenditures (PCE) report, a primary gauge of inflation for the Federal Reserve, and preliminary readings for the Michigan Consumer Sentiment Index Inflation Expectations.
- As for the crypto market, despite Bitcoin's slight dip, other altcoins like Solana, Cardano, and Hyperliquid show promise, buoying the overall market capitalization, currently positioned within a sideways channel around Bitcoin's recent lift-off.
