Markets
Here’s Why BTC, SOL, and AI Coins Could Rally This Week
The crypto market saw positive momentum last week, as evidenced by the rising prices of major cryptocurrencies like Bitcoin, Ethereum, Solana, XRP and others. Meanwhile, the rally follows a wave of developments in the broader financial market, not to mention the crypto sector. However, amid the rally, some market observers are wondering whether the positive momentum could continue this week.
Why is the crypto market poised for a rally this week?
Several developments could shape the crypto market’s performance this week. Here we discuss some of the key reasons that could further fuel the recovery in the coming days.
Bitcoin ETF Entries
THE WE Spot Bitcoin ETF gained ground last week, with inflows approaching $950 million. In particular, last week’s large capital inflows boosted investor confidence, especially after fund flows slowed in recent weeks.
Whereas, if Spot Bitcoin ETFs continue to see such inflows, market participants would focus more on the digital asset space, which could lead to higher prices.
Cooling of inflation data
THE WE Consumer Price Index (CPI) Data last week showed inflation slowed in April, fueling market sentiment. So far, the crypto market as well as the financial sector as a whole has experienced increased volatility due to inflation concerns.
However, the recent WE CPI inflation data brought some relief to market participants. Additionally, Bitcoin price also rose following US labor market data, as investors bet on a dovish stance from the Federal Reserve in the coming days.
That said, investors will be closely watching the upcoming May Fed meeting minutes for more information on potential Fed actions. The minutes of the last Fed meeting will be published on Wednesday May 22.
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Speeches from Fed officials and economic data
The crypto market will also closely follow the Fed’s upcoming speeches next week. Fed Vice Chairman for Supervision Michael Barr and Fed Vice Chairman 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 including Atlanta Fed President and Fed President Bost.
On the other hand, consumer confidence data for May is also expected to be released next week, which would provide more insight into the current economic health.
Ethereum ETF Deadline
Ethereum has been gaining traction lately, with the initial deadline looming for the Ethereum Spot ETF next week. Although a large number of analysts have bet on a potential decline by the SEC, any other move could propel a strong rally in the crypto market.
Meanwhile, comparing the strong performance of Bitcoin after the approval of the US Spot Bitcoin ETF by the SEC, market observers expect the same scenario after the approval of the Ether ETF. However, according to Polymarket, the chances of Ethereum ETF approved as of May 31, it stands at just 11% at the time of writing.
Prosecution in case of undulation
The Ripple lawsuit has intensified in recent days, as Ripple CFO, Jonathan Bilich, recently submitted a statement supporting Ripple’s motion to seal documents relating to discounts provided on XRP to institutional buyers. This decision aims to maintain the confidentiality of 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 protect proprietary data and strategic decisions.
Notably, with the looming May 20 deadline for parties and third parties to file letters of opposition to omnibus letter sealing requests, the outcome of this motion could have implications for the price of XRP.
NVIDIA Earnings
The technology market as well as the crypto landscape eagerly anticipates NVIDIA’s gains scheduled for May 22 after the market closes. Notably, the world’s leading AI chip maker is expected to report a sharp rise in first-quarter revenue, which could fuel investor optimism.
At the same time, historical data suggests that any major developments in the field of AI tend to increase the prices of AI coins. Whereas if NVIDIA releases strong results, it could trigger a market rally. AI coins.
And after?
The crypto market is eagerly awaiting any developments from the SEC. SAB 121. The U.S. Senate passed a Congressional Review Act (CRA) to revise SEC Staff Accounting Bulletin No. 121 (SAB 121) with an exceptional vote of 60-38, marking a bipartisan milestone in crypto legislation on May 16.
Despite President Biden’s veto threat, backed by the White House, the vote marks a significant shift in crypto regulation. With Democratic favor and the pro-crypto sentiments of presidential candidate Donald Trump, the fate of the potential veto remains uncertain. For context, historical data suggests that veto threats do not always materialize into action, leaving room for speculation about the outcome of the final decision.
Meanwhile, investors are preparing for a week of vigilance, closely monitoring macroeconomic changes and market dynamics that could impact the crypto market. With a keen eye on potential developments, they anticipate how these factors could influence the direction of the crypto market in the coming days.
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