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See why BTC, SOL and AI coins could rise this week
The crypto market witnessed positive momentum last week as evidenced by the jump in major crypto prices such as Bitcoin, Ethereum, Solana, XRP and others. Meanwhile, the recovery follows a flurry of developments in the broader financial market, let alone the crypto sector. However, in the midst of the recovery, some market watchers are speculating whether the positive momentum could last this week.
Why is the crypto market primed for a rally this week?
Several developments could shape crypto market performance this week. Here we discuss some of the prominent reasons that could further fuel the recovery in the coming days.
Bitcoin ETF Inflows
O US Spot Bitcoin ETF gained notable traction last week, with inflows approaching around $950 million. Notably, the significant inflow last week boosted investor confidence, especially after fund flows cooled in recent weeks.
Whereas, if Spot Bitcoin ETFs continue to witness such inflows, market participants would shift their focus more towards the digital asset space, potentially driving prices higher.
Cooling of inflation data
O US Consumer Price Index (CPI) Data last week showed that inflation cooled in April, fueling market sentiment. So far, the crypto market, along with the broader financial sector, has witnessed increased volatility due to inflation concerns.
However, the recent US CPI inflation data sent some relief to market participants. Furthermore, the price of Bitcoin also rose following the US labor market data, as investors bet on a peaceful stance by the Federal Reserve in the coming days.
That said, investors will keep an eye on the upcoming minutes of the Fed’s May meeting for more information on the Fed’s potential move. Notably, the minutes of the latest Fed meeting will be released on Wednesday, 22 May.
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Speeches and economic data from Fed officials
The crypto market will also closely watch 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.
After that, Fed Governor Christopher Waller and Cleveland Fed President Loretta Mester will speak on Tuesday, along with other officials such as the Atlanta Fed President and Bost Fed President.
On the other hand, Consumer Sentiment data for May is also expected to be released next week, which would provide more information on current economic health.
Ethereum ETF Deadline
Ethereum has gained notable traction lately, with the initial deadline looming for the Spot Ethereum ETF next week. While a flurry of analysts have bet on a potential decline from the SEC, any further move could drive a robust recovery in the crypto market.
Meanwhile, comparing Bitcoin’s strong performance following the SEC’s approval of the US Spot Bitcoin ETF, market watchers are anticipating the same scenario following the approval of the Ether ETF. However, according to Polymarket, the odds of Ethereum ETF Approval on May 31 it was just 11% at the time of writing.
Ripple Process
The Ripple lawsuit has intensified in recent days, as Ripple CFO, Jonathan Bilich, recently filed a statement supporting Ripple’s motion to seal documents related to discounts offered on XRP to institutional buyers. The measure aims to maintain confidentiality in relation to confidential financial information.
Meanwhile, this development comes amid Ripple’s ongoing legal battle with the SEC. Bilich’s statement underscores Ripple’s efforts to protect proprietary data and strategic decisions.
Notably, with the May 20 deadline for parties and third parties to file summary letters in opposition to class letter motions to seal, the outcome of this motion could have implications for the price of XRP.
NVIDIA Profits
The technology market, along with the crypto landscape, eagerly anticipates NVIDIA Profit scheduled for May 22, after market close. Notably, the world’s leading AI chip maker is expected to report a robust increase in revenue in the first quarter, which could fuel investor optimism.
Meanwhile, historical data suggests that any major developments in the AI space are likely to drive up AI coin prices. Whereas, if NVIDIA reports a robust earnings result, it could trigger a rally in the AI coins.
What is the next?
The crypto market eagerly awaits any developments at the SEC SAB 121. The US Senate passed a Congressional Review Act (CRA) aimed at revising SEC Personnel Accounting Bulletin No. 121 (SAB 121) with a remarkable 60-38 vote, marking a bipartisan milestone in crypto legislation on March 16. May.
Despite President Biden’s veto threat, supported by the White House, the vote signals a significant change in the cryptographic regulation. With Democratic favoritism and presidential candidate Donald Trump’s pro-crypto sentiments, 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 prepared for a vigilant week ahead, closely monitoring macroeconomic changes and market dynamics that could impact the cryptocurrency market. With a close 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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