As June 1, the deadline for debt ceiling discussions, approaches, cryptocurrencies and the stock market are gearing up for a series of economic events that could significantly impact market sentiment. The U.S. Treasury Department has warned that the country could default on $31.4 trillion in debt from June 1, 2023, if no agreement is reached. In addition, market participants are eagerly awaiting the labor market data for the end of this month. Meanwhile, US Federal Reserve officials are considering for the first time the possibility of interrupting the rate hike. So what will happen this week? Here are some critical events that are expected to affect cryptocurrencies this week…
What happened in the market?
As we reported as Kriptokoin.com, US President Joe Biden made a statement during the summit of the G7 countries. He has made it clear that he will not accept a debt deal that protects wealthy tax evaders and cryptocurrency traders while jeopardizing food aid for millions of Americans. However, the rejection of the deal does not guarantee a smooth journey for the US economy. Earlier, US Treasury Secretary Janet Yellen warned that failure to reach an agreement would pose a significant risk to both the US and global economies.
Several key macroeconomic events are planned for the remainder of May 2023. Besides the ongoing debt ceiling negotiations, there are other important events. The minutes of the May 2023 Federal Open Market Committee (FOMC) meeting will be released on Wednesday, May 24. Market participants will closely analyze voting patterns regarding the possibility of Fed officials to pause the rate hike at both the current meeting and future FOMC meetings. In addition, the Personal Consumption Expenditure (PCE) Index, an important indicator of inflation in the US, is scheduled to be released on Friday, May 26. According to experts, a drop in PCE numbers will potentially trigger a spike in Bitcoin prices. If we look in more detail, the following events stand out…
These events will affect cryptocurrencies this week
Today, Fed officials will take center stage with speeches from Logan, Barkin and Bostic at 15:30 and 17:50 CET. These talks are closely watched by investors and analysts, as they will provide insight into the central bank’s stance on monetary policy. On Tuesday, May 23, the focus shifts to the United States with the release of key data. This data includes US Building Permits, which gives an idea of the state of the construction industry, and the US Manufacturing and Services Procurement Managers’ Index (PMI), which provides a snapshot of the country’s economic activity. These data will be revealed at 15:00 and 16:45 CEST.
Important developments are taking place on both sides of the Atlantic Ocean on Wednesday, May 24. Britain’s inflation figures are under close scrutiny as they shed light on the country’s price dynamics. Meanwhile, investors will be eagerly awaiting the speeches of the Bank of England (BoE) Governor and US Treasury Secretary Yellen. The BoE chief will speak at 4:00 PM and Yellen at 5:05 PM.
The US Gross Domestic Product (GDP) data for Thursday, May 25, are followed closely. Additionally, the U.S. Unemployment Claims and Pending Home Sales reports will provide workforce and housing sector information. On Friday, May 26, attention turns to the US Core Personal Consumption Spending Price Index (PCE). Simultaneously, the US Michigan Prospects Index will also be an important indicator. As the week comes to a close, Saturday, May 27, represents an important milestone for the crypto ecosystem. Because Ronin creates anticipation for unlock.
FED officials’ speeches draw attention
Meanwhile, several Fed officials are expected to make speeches in the coming days. Minneapolis Fed Chairman Neel Kashkari expressed his support for a pause in rate hikes at the next FOMC meeting in June 2023. These events and the statements of Fed officials will give more insight into the monetary policy decisions of the United States.
Market participants are advised to follow these events closely. It is expected to have a significant impact on the crypto market and shape future market sentiment. The outcome of the debt ceiling negotiations and the Fed’s stance on rate hikes are important. In addition, inflation data will be important factors affecting investment decisions in the coming weeks. Traders and investors will watch these events with great interest as they navigate the ever-changing economic environment.
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