Crypto’s Make-or-Break Week: Key Economic Events That Could Spark a Rally

Bitcoin bulls eye a comeback—but these macroeconomic landmines could derail the recovery.

Fed speeches, inflation data, and jobs numbers hit this week. Traders are betting crypto’s correlation with traditional markets will finally break. Spoiler: It won’t.

Meanwhile, Wall Street still can’t decide if blockchain is a revolution or a spreadsheet with extra steps.

, with indices gaining strong momentum. So far, the market has surged by. However, last week saw a sharp pullback, with thebefore slightly recovering with aon Friday.

Now, with, in observance of, all eyes are on thelined up for the week as markets reopen.

What Is Memorial Day?

, observed on the last Monday of May, is ahonoring military personnel who died while serving in the Armed Forces. While it’s a day of remembrance, it also marks the unofficial start of summer and a pause in trading activities.

Current Market Snapshot (As of May 26, 2025)

• S&P 500 Index: 5,802.83
  
• Nasdaq 100: 20,915.65
  
• Nasdaq Composite: 18,737.2
  
• US Dollar Index (DXY): 98.96
  

Key Economic Events to Watch This Week

Thegauges how optimistic consumers feel about the economy and job market.

• Previous: 86
  
• Expected: 87.2
  

A higher confidence reading generally signals economic strength and may attract capital toward traditional assets.
However, some studies suggest a negative correlation between consumer confidence and crypto performance.

The U.S. economyin Q1 2025:

• Previous Growth: +2.4%
  
• Latest Estimate: -0.3%
  

A key factor was a, triggered by, prompting businesses to stockpile goods.

A slowing GDP typically results in a risk-off environment, often bearish for cryptocurrencies.

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•   ,

• Core PCE (Excludes food and energy):
  
  • Previous: 0%
    
  • Expected: 0.1%
    
• Michigan Consumer Sentiment:
  
  • Previous: 50.8
    
  • Expected: 51
    

Easing inflation reflected in lower PCE could open the door for rate cuts, which typically favor risk assets like crypto.
However, weak consumer sentiment might offset this optimism, keeping investors cautious.

What This Means for Crypto Investors

With majorscheduled this week, the crypto market could see heightened volatility:

• A weak GDP report may lead to a broader risk-off sentiment, triggering a pullback in crypto.
  
• Lower inflation expectations may support digital assets if the Fed leans dovish.
  
• Shifts in consumer sentiment will offer clues about broader market risk appetite.
  

Conclusion: A Short but High-Stakes Week Ahead

Despite the holiday-shortened schedule, this week is packed with data that could MOVE both the equity and crypto markets. From consumer confidence to inflation and GDP, every metric will shape investor behavior. For crypto traders, staying ahead of these updates will be critical to navigating potential price swings.

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

FAQs

The annual US inflation rate (CPI) for the 12 months ending April 2025 was 2.3%, the lowest since February 2021.

Lower-than-expected CPI often signals potential rate cuts, favoring risk assets like crypto. Higher CPI can lead to a risk-off sentiment and weigh on prices.

The US economy is expected to see a significant slowdown in 2025, with GDP growth projected to be lower than in 2024.

Concerns include a Q1 2025 GDP contraction (-0.3%), the impact of tariffs on demand, and a potential slowdown in consumer spending and labor market momentum.