Markets
Here is why BTC, SOL and AI coins may rise this week
The cryptocurrency market saw positive momentum last week, as evidenced by the jump in prices of major cryptocurrencies such as Bitcoin, Ethereum, Solana, XRP, and others. Meanwhile, the rally follows a flurry of developments in the broader financial market, not to mention the cryptocurrency sector. However, amid the rally, some market watchers are speculating whether the positive momentum could last into this week.
Why is the cryptocurrency market poised for a rally this week?
Several developments could impact the cryptocurrency market’s performance this week. Here we discuss some of the key reasons that could fuel the rally further in the coming days.
Bitcoin ETF Inflows
THE WE Spot Bitcoin ETF gained significant momentum last week, with inflows approaching around $950 million. In particular, last week’s significant inflow has boosted investor confidence, especially after fund flows have cooled in recent weeks.
Whereas, if Spot Bitcoin ETFs continue to witness such inflows, market participants would shift their attention more towards the digital asset space, potentially driving prices higher.
Cooling inflation data
THE WE Consumer Price Index (CPI) Last week’s data showed inflation cooled in April, fueling market sentiment. So far, the cryptocurrency market, along with the financial sector in general, has seen increased volatility due to inflation concerns.
However, the recent WE CPI inflation data sent some relief to market participants. Furthermore, the price of Bitcoin also recovered following the US labor market data, as investors bet on an accommodative stance from the Federal Reserve in the coming days.
That said, investors will be keeping an eye on the upcoming May Fed meeting minutes for more information on the Fed’s potential move. The latest Fed meeting minutes will be released on Wednesday, May 22nd.
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Speeches by Fed officials and economic data
The cryptocurrency market will also be closely following the Fed’s upcoming speeches next week. Fed Vice Chair for Supervision Michael Barr and Fed Vice Chair Philip Jefferson will speak on Monday, May 20.
Next, Fed Governor Christopher Waller and Cleveland Fed President Loretta Mester will speak Tuesday, along with other officials such as the Atlanta Fed President and Bost Fed President.
On the other hand, consumer confidence data for May is also expected to be released next week, which would provide more information on the current health of the economy.
Ethereum ETF Expiration
Ethereum has gained considerable popularity lately, with the looming initial deadline for Ethereum spot ETF next week. While a flurry of analysts have been betting on a potential pullback from the SEC, any other move could spark a robust rally in the cryptocurrency market.
Meanwhile, comparing the strong performance of Bitcoin after the approval of the Spot Bitcoin ETF in the US by the SEC, market observers are anticipating the same scenario after the approval of the Ether ETF. However, according to Polymarket, the odds of Ethereum ETF approved as of May 31 it stands at just 11% at the time of writing.
Cause of Ripple
The Ripple lawsuit has intensified in recent days, as Ripple’s CFO, Jonathan Bilich, recently filed a statement in support of Ripple’s motion to seal documents related to discounts provided on XRP to institutional buyers. The move aims to maintain confidentiality regarding sensitive financial information.
Meanwhile, this development comes amid the ongoing legal battle between Ripple and the SEC. Bilich’s statement highlights Ripple’s efforts to safeguard proprietary data and strategic decisions.
In particular, with the looming May 20th deadline for parties and third parties to file briefs in opposition to omnibus letter motions to seal, the outcome of this motion could have implications on the XRP price.
NVIDIA earnings
The technology market and cryptocurrency landscape eagerly awaits NVIDIA earnings scheduled for May 22nd after the transfer window closes. Notably, the world’s top AI chip maker is expected to post a strong revenue increase in the first quarter, which could fuel investor optimism.
Meanwhile, historical data suggests that any major development in the field of artificial intelligence tends to increase the prices of AI coins. Whereas, if NVIDIA reports a robust earnings result, it could trigger a rally in TO THE coins.
What’s next?
The cryptocurrency market eagerly awaits any developments in the SEC SAT 121. On May 16, the U.S. Senate passed a Congressional Review Act (CRA) to revise SEC Staff Accounting Bulletin No. 121 (SAB 121) by a remarkable vote of 60-38, marking a bipartisan milestone in accounting legislation. cryptocurrencies.
Despite President Biden’s veto threat, supported by the White House, the vote marks a significant change cryptographic regulation. With Democratic favor and pro-crypto sentiments from presidential candidate Donald Trump, the fate of the potential veto remains uncertain. For context, historical data suggests that threatened vetoes do not always materialize into concrete action, leaving room for speculation about the outcome of the final decision.
In the meantime, investors are in for a watchful week, closely monitoring macroeconomic changes and market dynamics that could impact the cryptocurrency market. With a keen eye on potential developments, they anticipate how these factors could influence the direction of the cryptocurrency market in the coming days.
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