Cryptocurrency markets have shown positive momentum over the past week, as evidenced by their sharp rally. Selection subject Prices of cryptocurrencies such as Bitcoin, Ethereum, Solana, and XRP. Meanwhile, this rally follows a series of developments in the broader financial markets, not to mention the crypto sector. However, in the midst of a rising market, some market participants I'm guessing Hopefully this positive momentum can continue into this week.
Why is the crypto market poised for a rally this week?
Several developments could shape crypto market performance this week.Here we will discuss some of stand out reason, That could spur further gains in the coming days.
Bitcoin ETF inflow
of we The Spot Bitcoin ETF gained notable momentum last week, with inflows approaching around $950 million. especially, significant influx last week It boosted investor confidence, especially after capital flows cooled in the past few weeks.
under consideration that, If these inflows into Spot Bitcoin ETFs continue, market participants could shift their focus more towards the digital asset space, potentially pushing prices higher.
cooling expansion data
of we Consumer Price Index (CPI) data since last week showed that inflation slowed in April, stimulating market sentiment. So far, the virtual currency market has parallel and broader finance sector have We witnessed increased volatility due to inflation concerns.
However, recent we CPI inflation data is sent some relief to market participants. Furthermore, the Bitcoin price we labor market as investors bet on the Federal Reserve's dovish stance in the coming days.
Having said that, Investors will be closely monitoring the upcoming Fed meeting minutes. May, For more insight into the Fed's potential moves. Of note, the minutes of the Fed's last meeting are: will be released Wednesday, May 22nd.
Also read: Pro-XRP lawyer slams SEC Chairman Gensler's understanding of cryptography, and this is all about it
Fed officials' speeches and economic data
The cryptocurrency market also is closely tracking Fed speech scheduled for next week. Fed Vice Chairman for Oversight Michael Barr and Fed Vice Chairman Philip Jefferson will speak on Monday, May 20th.
The followingFederal Reserve President Christopher Waller and Cleveland Fed President Loretta Mester will speak on Tuesday, as well as other officials including Atlanta Fed President and Fed President Scott Vost.
On the other hand, consumer sentiment data for May is is also expected It will be released next week, it would provide Gain further insight into the current economic situation.
Ethereum ETF deadline
Ethereum has been gaining notable momentum recently, with the first spot Ethereum ETF due next week. While many analysts are betting on a possible SEC pullback, other moves could fuel a strong rally in the crypto market.
On the other hand, when comparing Bitcoin's strong performance, we With the SEC's approval of the Spot Bitcoin ETF, market watchers are expecting a similar scenario after the approval of the Ether ETF.However, according to Polymarket, the odds of an Ethereum ETF being approved by May 31st are standing on At the time of writing, it is only 11%.
ripple lawsuit
Ripple lawsuit intensifies in the last few daysRipple CFO Jonathan Bilic recently filed a declaration in support of Ripple's motion to seal documents related to discounts offered on XRP to institutional buyers. This move is aimed at maintaining confidentiality regarding sensitive financial information.
Meanwhile, this development comes amid an ongoing legal battle between Ripple and the SEC. Bilic's declaration highlights Ripple's commitment to protecting its proprietary data and strategic decisions.
In particular, the May 20 deadline for parties and third parties to file briefs opposing the omnibus letter motion for sealing is approaching, and the outcome of this motion could impact XRP prices. .
NVIDIA's revenue
The technology market and cryptocurrency industry are eagerly anticipating NVIDIA's earnings, scheduled for May 22nd after the market closes. especially, lead the world A.I. chip manufacturer is expected The company reported a solid revenue jump in the first quarter, which could increase investor optimism.
On the other hand, historical data suggests that: Any Selection subject development of A.I. Space tends to enhance the effect A.I. coin price. Considering that, If NVIDIA reports strong financial results, it could cause the stock price to rise. A.I. coin.
What's next?
The cryptocurrency market is eagerly awaiting developments in the SEC's SAB 121. of we Senate passes Congressional Review Act (CRA) for review purposes SEC Staff Accounting Bulletin No. 121 (SAB 121) received an overwhelming 60-38 vote on May 16, marking a bipartisan milestone in virtual currency legislation.
The vote signals significant changes to crypto regulation, despite President Biden's threat of a veto with support from the White House. The fate of a potential veto remains uncertain due to presidential candidate Donald Trump's pro-Democratic and pro-crypto sentiments. By way of background, historical data suggests that veto threats do not always translate into action, leaving room for speculation about the outcome of the final decision.
Meanwhile, investors are bracing for the coming week with close monitoring of macroeconomic changes and market trends that could impact the crypto market. They keep a keen eye on potential developments and anticipate how these factors could sway the direction of the cryptocurrency market in the coming days.
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