How the Crypto Market Is Performing Today?

Cryptocurrency

Here’s Why BTC, SOL, & AI Coins Could Rally This Week – Crypto News

Published

1 year ago

May 19, 2024

Dripp

The crypto market witnessed a positive momentum last week, as evidenced by the jump in major crypto prices like Bitcoin, Ethereum, Solana, XRP, and others. Meanwhile, the rally follows a flurry of developments in the broader financial market, let alone the crypto sector. However, amid the rally, some market watchers are speculating if the positive momentum could last through this week.

Why Crypto Market Is Poised For a Rally This Week?

Several developments could shape the crypto market’s performance this week. Here we discuss some of the prominent reasons, that could fuel the rally further in the coming days.

Bitcoin ETF Inflows

The U.S. Spot Bitcoin ETF gained notable traction last week, with inflows nearing around $950 million. Notably, the significant inflow last week has bolstered the investors’ confidence, especially after the fund flows cooled over the past few weeks.

Considering that, if the Spot Bitcoin ETFs continue to witness such inflows, the market participants would be shifting their focus more toward the digital asset space, potentially driving the prices higher.

Cooling inflation data

The U.S. Consumer Price Index (CPI) data from last week showed that the inflation has cooled in April, fueling the market sentiment. So far, the crypto market along with the broader financial sector has witnessed heightened volatility due to inflation concerns.

However, the recent U.S. CPI inflation data has sent some relief to the market participants. In addition, the Bitcoin price also rallied following the data by the U.S. Labor market, as investors bet on a dovish stance by the Federal Reserve in the coming days.

Having said that, the investors would keep a close watch on the upcoming minutes from Fed’s meeting in May, for more insights on the Fed’s potential move. Notably, the minutes from the Fed’s last meeting will be released on Wednesday, May 22.

Also Read: Pro-XRP Lawyer Slams SEC Chair Gensler’s Crypto Understanding, Here’s All

Fed official’s speeches & Economic Data

The crypto market will also be keeping a close track of the upcoming Fed speeches next week. Fed Vice Chair For Supervision Michael Barr and Fed Vice Chair Philip Jefferson will speak on Monday, May 20.

Following that, Fed Governor Christopher Waller and Cleveland Fed President Loretta Mester will speak on Tuesday, along with other officials like Atlanta Fed President and Bost Fed President.

On the other hand, the Consumer Sentiment data for May is also expected to be released next week, which would provide more insights into the current economic health.

Ethereum ETF Deadline

Ethereum has gained notable traction lately, with the looming initial deadline for the Spot Ethereum ETF next week. Although a flurry of analysts have put their bets on a potential decline by the SEC, any other move could propel a robust rally in the crypto market.

Meanwhile, comparing the strong performance of Bitcoin following the U.S. Spot Bitcoin ETF approval by the SEC, market watchers are anticipating the same scenario following Ether ETF approval. However, according to Polymarket, the odds of Ethereum ETF approval by May 31 stands at only 11% as of writing.

Ripple Lawsuit

The Ripple lawsuit has intensified in recent days, as Ripple’s CFO, Jonathan Bilich, recently submitted a declaration backing Ripple’s motion to seal documents related to discounts provided on XRP to institutional purchasers. The move aims to maintain confidentiality regarding sensitive financial information.

Meanwhile, this development comes amid Ripple’s ongoing legal battle with the SEC. Bilich’s declaration underscores Ripple’s efforts to safeguard proprietary data and strategic decisions.

Notably, with the looming deadline of May 20 for parties and third parties to file letter briefs in opposition to omnibus letter motions to seal, the outcome of this motion could have implications on the XRP price.

NVIDIA Earnings

The technology market along with the crypto landscape eagerly anticipates NVIDIA’s earnings scheduled for May 22 after the market close. Notably, the global leading AI chip maker is expected to report a robust revenue surge in Q1, which could fuel the investors’ optimism.

Meanwhile, historical data suggests that any major developments in the AI space tend to boost the AI coins’ prices. Considering that, if NVIDIA reports a robust earnings result, it could trigger a rally in the AI coins.

What’s Next?

The crypto market eagerly awaits any development in the SEC’s SAB 121. the US Senate passed a Congressional Review Act (CRA) aimed at reviewing SEC Staff Accounting Bulletin No. 121 (SAB 121) with an outstanding 60-38 vote, marking a bipartisan milestone in crypto legislation on May 16.

Despite President Biden’s veto threat, supported by the White House, the vote signals a significant shift in crypto regulation. With Democratic favor and pro-crypto sentiments from Presidential candidate Donald Trump, the fate of the potential veto remains uncertain. For context, historical data suggests that threatened vetoes don’t always materialize into action, leaving room for speculation on the final decision’s outcome.

Meanwhile, investors are poised for a vigilant week ahead, closely monitoring macroeconomic shifts and market dynamics that could impact the crypto market. With a keen eye on potential developments, they anticipate how these factors might sway the direction of the crypto market in the coming days.

Also Read: Elon Musk Unveils Key Updates For Grok Amid OpenAI Hype

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