Our experts analyzed the market situation and told us how it might change in the coming week for Bitcoin
Last week was a good week for bitcoin. Since the beginning of last week, the price recovered by 9.43% to $67,280. And from the weekly low of $60,187 - by 10.7%. The main drivers for the U.S. dollar and risk assets were a rally in GameStop (GME) shares. As well as April inflation data and related expectations for Fed action.
Upcoming important events this week
In the week from May 20 to 26, protocols of the May meeting of the American Central Bank (May 22) will be published. And market participants will probably be able to better understand the prospects of its monetary policy. The publication of the protocol is important for determining the course of the Fed's current policy and the prospects for raising or lowering the interest rate in the US.
Possible scenarios of Bitcoin price development
The week ended on a positive note, and bitcoin, which traded at the beginning of the last week just above $61,000. Bitcoin gained 8% on the back of encouraging data on the state of the U.S. economy.
The main news of the economic calendar of the past week was the publication of data on inflation in the United States. In April it decreased from 3.5% to 3.4% year-on-year. This gave investors hope that the trend would reverse and the U.S. Federal Reserve would soon reach its 2% target. Investors agree that the key rate will start to decline in the second half of the year. In turn, the reduction of the key rate will return the market participants' appetite for risk and increase the attractiveness of risky assets.
On May 15, immediately after the news of lower inflation in the U.S. bitcoin made a sharp jump of almost $2,000 - from $62,700 to $64,300 in a matter of minutes. This shows that inflation and the key rate in the U.S. are now the dominant factors. And affecting the mood of trading participants in the crypto market.
Simultaneously with the sharp rise in the bitcoin rate, the stock market's interest in bitcoin spot ETFs returned. By the end of last week, the daily trading volume of this instrument on U.S. stock exchanges exceeded $5.6 billion. Such volume has not been observed since March 24.
The main economic news of the next week will be the speeches of representatives of the U.S. Federal Reserve System. And which, without any doubt, will touch upon the issue of the regulator's monetary policy. Traders are also waiting for the publication of the minutes of the Fed's meeting, which took place in early May.
As usual, there are several scenarios. The most probable ones are further growth and movement to $68,500 or correction to $64,500. A fall to $60 thousand is still possible. But in the nearest week it is unlikely because of general enthusiasm of market participants after positive news about decrease of consumer prices growth rates in the USA. $BTC