The crypto market experienced positive momentum last week, as evidenced by the rise in major crypto prices such as Bitcoin, Ethereum, Solana, XRP, and others. The rally, meanwhile, follows developments in the broader financial market, let alone the crypto sector. But amid the rise, some market observers are speculating whether the positive momentum can continue throughout this week. Various developments may shape the performance of the crypto market this week. Here we discuss some of the prominent reasons that could further fuel the rally in the coming days.
Watch out for Bitcoin ETF inflows and “cooling” of inflation data
The US Spot Bitcoin ETF saw significant interest last week, with inflows approaching nearly $950 million. The significant inflow last week has boosted investors’ confidence, especially after fund flows cooled over the last few weeks. Considering that if spot Bitcoin ETFs continue to witness such inflows, market participants will shift their focus further to the crypto asset space and potentially prices will rise further.
Meanwhile, cryptokoin.com As we reported, last week’s US Consumer Price Index (CPI) data showed that inflation cooled in April and increased market confidence. So far, the crypto market and the broader financial sector have witnessed increased volatility due to inflation concerns. However, the latest US CPI inflation data has brought some relief to market participants. In addition, Bitcoin price also rose following the US Labor market data as investors trusted the FED’s dovish stance in the coming days.
However, investors will closely monitor the upcoming minutes of the Fed’s May meeting to learn more about the Fed’s potential move. In particular, the minutes of the Fed’s last meeting will be published on Wednesday, May 22.
Fed official’s speeches and economic data
The crypto market will also be closely monitoring next week’s Fed speeches. Fed Vice Chairman for Supervision Michael Barr and Fed Vice Chairman Philip Jefferson will speak on Monday, May 20. Following this, Fed Governor Christopher Waller will speak on Tuesday, along with other officials such as Cleveland Fed President Loretta Mester, Atlanta Fed President and Bost Fed President. On the other hand, May Consumer Confidence data, which will provide more information about the current economic situation, is expected to be announced next week.
Ethereum ETF deadline and Ripple lawsuit
Ethereum has gained significant traction recently as the deadline for the Spot Ethereum ETF approaches next week. Although numerous analysts are betting on a potential downturn from the SEC, any further move could lead to a strong rally in the crypto market. Meanwhile, comparing Bitcoin’s strong performance following the US Spot Bitcoin ETF approval by the SEC, market watchers expect the same scenario following the Ether ETF approval. However, according to Polymarket, the probability of the Ethereum ETF being approved by May 31 is only 11% as of the time of writing.
The Ripple lawsuit has intensified in recent days, with Ripple CFO Jonathan Bilich recently filing an affidavit supporting Ripple’s request to seal documents related to discounts provided to institutional buyers on XRP. This move aims to protect the confidentiality of sensitive financial information. Meanwhile, this development emerged during a period of Ripple’s ongoing legal battle with the SEC. Bilich’s statement underscores Ripple’s efforts to protect private data and strategic decisions. Given the looming May 20 deadline for parties and third parties to file letter briefs opposing class letter motions, the outcome of this motion could have implications for the price of XRP.
NVIDIA and artificial intelligence coins
The tech market and the crypto world are eagerly awaiting NVIDIA’s earnings scheduled for May 22 after the market close. Notably, the global leading AI chip maker is expected to report strong revenue growth in the first quarter, which could boost investors’ optimism. Meanwhile, historical data shows that any major development in AI tends to increase the prices of AI coins. If NVIDIA reports strong earnings results, this could trigger a rally in AI coins. The largest AI coins, for now, are as follows:
What’s next for Bitcoin and altcoins?
The crypto market is eagerly awaiting any developments in the SEC’s SAB 121. U.S. Senate, SEC Staff Accounting Bulletin No. It marked a bipartisan breakthrough by passing the Congressional Review Act (CRA) to review 121 (SAB 121) by an extraordinary vote of 60 to 38. In crypto legislation on May 16. Despite US President Biden’s veto threat backed by the White House, the vote marks a significant change in crypto regulation.
The fate of the potential veto remains unclear due to Democratic support and Presidential candidate Donald Trump’s pro-crypto sentiments. For context, historical data shows that veto threats do not always lead to action, leaving room for speculation about the outcome of the final decision. Meanwhile, investors are cautiously preparing for the coming week by closely monitoring macroeconomic changes and market dynamics that may affect the crypto market. By closely monitoring potential developments, they predict how these factors may affect the direction of the crypto market in the coming days.
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