The cryptocurrency market saw positive momentum last week, as evidenced by the jump in important prices of cryptocurrencies such as Bitcoin, Ethereum, Solana, XRP and others. Meanwhile, the rally follows a series of developments in the broader financial market, not to mention the crypto sector. However, amid the rally, some market observers they are speculating if only the positive momentum could last all this week.
Why the crypto market is poised for a rally this week?
Several developments could shape the performance of the crypto market this week. Here we discuss some of the prominent reasons, that could fuel the rally further in the coming days.
Bitcoin ETF Inflows
He US Bitcoin Spot ETF gained notable traction last week, with receipts approaching $950 million. Notably, the important influx last week has bolstered investor confidence, especially after fund flows cooled in recent weeks.
Considering that, If Bitcoin Spot ETFs continue to experience such inflows, market participants would shift their focus more towards the digital asset space, which could drive prices higher.
Cooling inflation data
He US Consumer Price Index (CPI) data since last week showed that inflation has cooled in April, fueling market sentiment. Until now, the cryptocurrency market throughout with the broader financial sphere sector has It witnessed increased volatility due to inflation concerns.
However, the recent US CPI inflation data has sent some relief to market participants. Furthermore, the price of Bitcoin also rose after the data from the US Labor market, as investors bet on a dovish stance from the Federal Reserve in the coming days.
Having said this, Investors will closely monitor the upcoming Federal Reserve meeting minutes in Can, for more information on the Federal Reserve's possible action. In particular, the minutes of the last meeting of the Federal Reserve being released on Wednesday, May 22.
Also read: Pro-XRP Lawyer Slams SEC Chairman Gensler's Crypto Understanding, Here's It All
Fed officials speeches and economic data
The cryptocurrency market too be closely following upcoming Fed speeches next week. Federal Reserve Vice Chairman of Supervision Michael Barr and Federal Reserve Vice Chairman Philip Jefferson will speak on Monday, May 20.
Following thisFederal Reserve Governor Christopher Waller and Cleveland Fed President Loretta Mester will speak Tuesday, along with other officials such as Atlanta Fed President and Bost Fed President.
On the other hand, the Consumer Sentiment data for May is also expected which will be released next week, that would provide more knowledge about current economic health.
Ethereum ETF Deadline
Ethereum has gained notable momentum lately, with the looming initial deadline for the Ethereum Spot ETF next week. Although a flurry of analysts have bet on a possible downfall of the SEC, any further move could fuel a strong rally in the cryptocurrency market.
Meanwhile, compare Bitcoin's strong performance after the US Spot the approval of the Bitcoin ETF by the SEC, market observers anticipate the same scenario after the approval of the Ether ETF. However, according to Polymarket, the odds of Ethereum ETF Approval before May 31 is found in only 11% at the time of writing this article.
Rippled demand
Demand for Ripple has intensified In recent daysas Ripple CFO, Jonathan Bilich, recently filed a statement supporting Ripple's motion to seal documents related to discounts provided on XRP to institutional buyers. The measure aims to maintain confidentiality with respect to sensitive financial information.
Meanwhile, this development comes amid Ripple's ongoing legal battle with the SEC. Bilich's statement underscores Ripple's efforts to safeguard proprietary data and strategic decisions.
In particular, with the looming May 20 deadline for parties and third parties to file summary letters against blanket motions for letters to seal, the outcome of this motion could have implications for the price of XRP.
NVIDIA earnings
The technology market along with the crypto landscape is eagerly anticipated NVIDIA's profits scheduled for May 22 after the market closes. Notably, the world leader AI chip maker expected report strong revenue growth in the first quarter, which could fuel investor optimism.
Meanwhile, historical data suggests that any important developments in the AI space tends to drive AI coin prices. Taking into account that, If NVIDIA reports a strong earnings result, it could trigger a rally in the AI coins.
Whats Next?
The cryptocurrency market eagerly awaits any news from the SEC SAB 121. he US The Senate approved a Congressional Review Law (AVE) directed to review SEC Staff Accounting Bulletin No. 121 (SAB 121) with an outstanding vote of 60 to 38, marking a bipartisan milestone in cryptocurrency legislation on May 16.
Despite President Biden's veto threat, supported by the White House, the vote signals a significant change in crypto regulation. With Democratic favor and presidential candidate Donald Trump's pro-cryptocurrency 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 preparing for a week of vigilance, closely monitoring macroeconomic changes and market dynamics that could affect the cryptocurrency market. With a keen eye on possible developments, they anticipate how these factors could influence the direction of the crypto market in the coming days.
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