4 Factors That May Affect the Bitcoin and Cryptocurrency Market in the Coming Week

The cryptocurrency and stock markets saw a recovery last week as sentiment improved. However, many analysts believe that U.S. stocks have not yet escaped from difficult conditions. Global trade tensions have escalated, nearly dragging stocks into a bear market. Uncertainty over tariffs, signs of economic recession, and persistent inflation continue to impact consumer and investor sentiment. This week also marks the final full week of economic data release before the Federal Reserve's meeting in May. Economic event from April 27 to May 2 Consumer confidence data will be released on Tuesday, shedding light on the overall sentiment in the United States. Following that will be employment data, which will also provide insights into the labor market and broader economic conditions. Wednesday will witness the report on Core Personal Consumption Expenditures (PCE) for March, reflecting the average amount consumers spend monthly. This information is one of the key inflation indicators used by central bank policymakers. Also on Wednesday is the preliminary estimate for annual GDP growth for the first quarter, providing an initial insight into changes in GDP from the previous quarter. Economists have predicted that growth will remain unchanged from the fourth quarter of 2024, at an annual rate of 2.4%. A higher GDP reading may influence expectations for Fed rate cuts, while a lower-than-expected GDP reading or slowing growth may provide the central bank with data to support rate cuts.

On Friday, a number of reports on the unemployment situation will be released, detailing the number of new jobs created last month and the percentage of people actively seeking employment. U.S. futures stocks fell at the end of Sunday, ahead of a busy week with quarterly earnings reports in the coming days. Four of the Seven Great Companies, Amazon, Apple, Meta, and Microsoft, will publish their quarterly reports this week. Prospects of the cryptocurrency market The cryptocurrency market declined during the early trading session in Asia on Monday, with a total market capitalization hovering around $3 trillion and at risk of falling below this level for the first time in a week. The price of Bitcoin remained stable at around $94,000 over the weekend, but briefly dropped below $93,000 on Monday before recovering slightly. However, the asset still increased by 7% over the past week. Ethereum has dropped back below $1,800 once again and remains in a bear market. Meanwhile, XRP has bucked the trend with a daily increase of 3% to reach $2.24 at the time of writing.