Key Economic Events to Watch This Week as Crypto Markets Aim to Rebound
The post Key Economic Events to Watch This Week as Crypto Markets Aim to Rebound appeared first on Coinpedia Fintech News
May was a sensational month for the U.S. stock market , with indices gaining strong momentum. So far, the market has surged by at least 3.19% . However, last week saw a sharp pullback, with the S&P 500 plunging over 2.68% before slightly recovering with a 0.37% rebound on Friday.
Now, with U.S. markets closed on Monday, May 26 , in observance of Memorial Day , all eyes are on the key economic events lined up for the week as markets reopen.
What Is Memorial Day?
Memorial Day , observed on the last Monday of May, is a federal holiday in the U.S. honoring 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
1. CB Consumer Confidence Index — May 27, Tuesday
The Conference Board Consumer Confidence Index gauges 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.
2. US Q1 GDP 2nd Estimate — May 29, Thursday
The U.S. economy unexpectedly contracted in Q1 2025:
-
Previous Growth
: +2.4%
-
Latest Estimate
: -0.3%
A key factor was a 41.3% surge in imports , triggered by Trump’s proposed tariffs , prompting businesses to stockpile goods.
A slowing GDP typically results in a risk-off environment, often bearish for cryptocurrencies.
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- ,
3. Core PCE Price Index & Michigan Consumer Sentiment — May 30, Friday
-
Core PCE (Excludes food and energy)
:
-
Previous
: 0%
-
Expected
: 0.1%
-
Previous
: 0%
-
Michigan Consumer Sentiment
:
-
Previous
: 50.8
-
Expected
: 51
-
Previous
: 50.8
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 major key economic events scheduled 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.
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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.
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