Crypto Watch: Key Events Shaping Bitcoin and Crypto This Week

Bitcoin (BTC) managed to hold its ground this week, despite the increasing US dollar index (DXY). One possible reason for its resilience could be the phenomenal price surge of chip manufacturer Nvidia. Following strong quarterly earnings, the US company’s value increased by over 25%, providing a positive end to the week in the US financial markets. The Nasdaq100 technology index reached a new 52-week high.

The ongoing uncertainty surrounding the timely resolution of the US debt ceiling increase accelerated the upward momentum in the crypto market over the past 24 hours, leading to a significant recovery for the leading cryptocurrency, reaching a peak of $28,400. This appears to have temporarily halted the bearish consolidation trend of the previous weeks. In a week-to-week comparison, the Bitcoin price has gained about six percent, breaking through the trading range of the past 14 days to the upside.

However, whether this price increase, just ahead of the imminent approval of the negotiated details of the debt ceiling adjustment between Democrats and Republicans by the Senate and the House of Representatives, is merely an initial reaction or will sustainably benefit the prices of Bitcoin and other cryptocurrencies remains to be seen, likely on Tuesday at the earliest, due to the Memorial Day holiday in the US. For Bitcoin, it remains unchanged that a confirmed breakout above $27,800 would resolve the recent sideways movement bullishly and activate new price targets to the upside.

Key Economic Data to Watch This Week

The final trading week of May presents several important events that could influence the prices of Bitcoin and other cryptocurrencies. The week starts with the release of new data on US consumer confidence. Midweek, the JOLTS job report for the US will be published. In the second half of the week, the initial estimates of the Eurozone consumer price index for the current trading month will be presented.

Additionally, the crypto space eagerly awaits the launch of the retail trading sector in Hong Kong. Starting from June 1st, Chinese retail investors in the metropolis can trade around 20 cryptocurrencies on state-licensed crypto exchanges. The week concludes with fresh US labor market data. Simultaneously, the US Bureau of Labor Statistics will release the monthly non-farm payroll report (NFP) and the unemployment rate.

US Consumer Confidence at the Beginning of the Week

Tuesday, May 30th, 2023: On Tuesday, the Conference Board (CB) will announce the latest US consumer confidence figures for the current month of May at 4:00 PM (CET). In the previous month, household assessments of the economic outlook in the US fell to 101.3, falling below the expert forecast of 104.0. The better-than-expected numbers in March did not confirm in the subsequent month.

Analysts predict a further decline in May, with expectations of a drop below the 100 threshold to 99.0. If the estimates are met or even surpassed, and consumer confidence continues to decline as it has in the previous months of this year, it would increase the likelihood of a possible US recession in the coming trading months.