Crypto markets have resumed their consolidation phase ahead of another busy week on the U.S. economic calendar, so will volatility pick up this week?

The highlights for the economy this week were the minutes from the Federal Reserve meeting and a big earnings report from semiconductor giant Nvidia.

There are also reports on global manufacturing and services indices and consumer inflation expectations, which may have some impact on the market.

Economic agenda from May 20 to 24

Last week, the Dow Jones Industrial Average (DJIA) in the US surpassed the 40,000 mark for the first time. Stock gains were boosted by favorable numbers in the CPI report, which fueled speculation that the US economy is cooling and that the central bank could cut interest rates in the coming months.

This Wednesday, the market will welcome the release of the minutes of the Federal Reserve FOMC's May meeting. The minutes are expected to provide investors with more information and insights on the future direction of monetary policy and the possible timetable for interest rate cuts.

On Thursday, the preliminary Global Manufacturing PMI report for May will be released, capturing business conditions in the manufacturing sector.

On May 23, the PMI report related to the service industry will be released. This report is an important economic leading indicator. The service industry occupies a pivotal position in the US economy, and its contribution to GDP exceeds 70%, so this report can reflect the latest changes in the economic situation.

On Friday, we will see the Michigan Consumer Sentiment Index for May, which measures inflation expectations. These reports depict the results of monthly surveys of the country’s consumer confidence levels.

Semiconductor giant Nvidia also has a much-anticipated quarterly earnings report on Wednesday that could keep tech stocks and cryptocurrencies rallying.

The Kobeissi Letter noted this divergence in market opinion in a May 19 commentary:

"The bulls believe that Nvidia's stock price will continue to rise and break through its all-time high, while the bears believe that the stock price has reached its peak and will fall next."

Asian stocks edged higher on Monday, May 20, in line with gains on Wall Street as regional investors await the release of several key economic indicators this week, including inflation data from Japan and an interest rate decision from South Korea.

Cryptocurrency Market Impact

With no major economic events this week, the cryptocurrency market is unlikely to be significantly impacted and volatility is likely to remain low.

Cryptocurrency markets got a boost last week, with total market capitalization exceeding $2.5 trillion and holding onto gains over the weekend. However, they have fallen slightly over the past 24 hours, down 1.2%.

Bitcoin $BTC fell to an intraday low of $66,000 but found support at that level and recovered to $67,000 at the time of writing during Monday morning’s Asian trading session.

Ethereum $ETH fell 1.3% on the day, retreating to $3,078 after hitting a high of $3,142 over the weekend. Altcoins were broadly lower on Monday morning.

Conclusion:

This week, although the US economic schedule is full, the cryptocurrency market is not expected to be greatly impacted and market volatility may remain stable. Although the total market value of cryptocurrencies exceeded the $2.5 trillion mark last week, the market has seen a slight correction in the short term. Major cryptocurrencies such as Bitcoin and Ethereum have experienced a certain degree of price volatility, but the overall market sentiment remains positive.

Investors will continue to pay attention to the minutes of the Federal Reserve FOMC meeting and the earnings reports of important companies such as Nvidia, as well as key economic indicators such as the global manufacturing and service PMI indexes. Although these factors may have a certain impact on traditional markets, their impact on the cryptocurrency market is expected to be limited.

As the cryptocurrency market matures and the global economic environment changes, investors should maintain a cautious and optimistic attitude and pay close attention to market dynamics and macroeconomic indicators to make wise investment decisions. At the same time, the uniqueness and decentralized nature of the cryptocurrency market means that its price fluctuations may be more affected by industry internal factors and technological innovation. Therefore, market participants need to comprehensively consider various information to grasp the development trend of the cryptocurrency market. #加密货币 #美联储