As demonstrated by the increase in the values of popular cryptocurrencies like Bitcoin, Ethereum, Solana, XRP, and others, the cryptocurrency market saw good momentum last week. The surge, however, comes after a flurry of events in the cryptocurrency space and the more significant financial market. Though the market is rallying, some observers wonder if the strong momentum will continue this week.
Why This Week Is Expected to Be a Rally for the Crypto Market?
Several events could influence the cryptocurrency market’s performance this week. Here are a few key factors that could spur the rise in the days to come.
Inflows into Bitcoin ETFs
Last week, the U.S. Spot Bitcoin ETF saw significant growth, with over $950 million inflows. This substantial inflow has increased investor confidence, particularly in light of the recent slowdown in fund flows.
Considering this, if the Spot Bitcoin ETFs continue to see such inflows, market players will focus more on the digital asset industry, which might raise prices.
Decreasing info on inflation
The recent U.S. Consumer Price Index (CPI) data indicated that April inflation has decreased, positively impacting market sentiment. As a result of worries about inflation, the cryptocurrency market and the more significant financial industry have so far experienced increased volatility.
However, the latest U.S. CPI inflation data has given market investors some respite. Furthermore, the price of Bitcoin increased in response to statistics from the U.S. labour market as investors wagered that the Federal Reserve would adopt a more dovish attitude in the upcoming days.
Nevertheless, investors should closely monitor the minutes of the Fed’s May meeting to learn more about the Fed’s probable next step. Notably, on May 22, the minutes from the Federal Reserve’s most recent meeting will be made public.
Speeches by Fed officials and Economic Data
The cryptocurrency market will also closely watch the impending Fed talks next week. On Monday, May 20, Fed Vice Chair Philip Jefferson and Fed Vice Chair Michael Barr will give speeches.
Tuesday’s speakers will include the Atlanta Fed President and Bost Fed President, Fed Governor Christopher Waller, and Cleveland Fed President Loretta Mester.
However, the release of the May consumer sentiment statistics is anticipated to reveal additional information about the economy’s state next week.
Ethereum ETF Expiration Date
With the first deadline for the Spot Ethereum ETF next week, Ethereum has been gaining significant traction lately. While many analysts are betting on the SEC pulling back, any other action might spark a strong upswing in the cryptocurrency market.
Market observers expect a similar situation following the approval of the Ether ETF, in contrast to Bitcoin’s robust performance following the SEC’s approval of the U.S. Spot Bitcoin ETF. Nevertheless, as of this writing, Polymarket reports that the likelihood of an Ethereum ETF being approved by May 31 is only 11%.
Lawsuit Ripple
Since Ripple’s CFO, Jonathan Bilich, filed a declaration supporting the company’s move to seal records about discounts offered to institutional buyers on XRP, the litigation against Ripple has become more intense. The goal of the action is to protect sensitive financial information in confidence.
This news is being announced amid Ripple’s protracted legal dispute with the SEC. Bilich’s statement highlights Ripple’s efforts to protect confidential information and business judgements.
Notably, the result of this motion may affect the price of XRP given the approaching May 20 deadline for parties and third parties to submit letter briefs opposing omnibus letter motions to seal.
NVIDIA Revenue
NVIDIA’s earnings, which are expected on May 22 after the market close, are highly anticipated by both the technology industry and the cryptocurrency scene. Notably, a substantial revenue increase is expected from the world’s top manufacturer of A.I. chips in Q1, which may encourage investors.
However, past evidence indicates that any significant advancements in the A.I. field typically increase the value of A.I. coins. Considering everything, a strong earnings report from NVIDIA may spark a surge in the A.I. coins.
What Comes Next?
The cryptocurrency industry highly anticipates any updates on the SEC’s SAB 121. On May 16, the U.S. Senate achieved a bipartisan milestone in crypto legislation by passing the Congressional Review Act (CRA), designed to evaluate SEC Staff Accounting Bulletin No. 121 (SAB 121). The vote was impressive: 60-38.
Notwithstanding President Biden’s White House-backed veto threat, the vote represents a significant change in crypto policy. The potential veto’s fate remains uncertain, given Democratic backing and Donald Trump’s favorable stance on cryptocurrency during his candidacy. Past precedents suggest.
Investors are vigilant this week, closely monitoring macroeconomic shifts and market variables that could sway the cryptocurrency market’s trajectory. They anticipate events.
