The Coming Week Is Set to Be Crucial for the Crypto Market as Several Major Economic Updates

The coming week is set to be crucial for the crypto market as several major economic updates from the United States are due. Market participants are paying attention to the upcoming April

Several major U.S. economic updates are due in the coming week, which could be crucial for the crypto market as several major U.S. economic updates are due.

Attention will be focused on the April PCE inflation report and the meeting minutes from the Fed. The expected data could influence market opinions amid concerns about inflation, interest rates, and ongoing trade issues.

The PCE inflation report, set to be released on Monday, May 30, is anticipated to influence the direction of the market this week. According to median forecasts compiled by Dow Jones and The Wall Street Journal, the core PCE index, which excludes food and energy prices, is expected to remain at 2.6% year-over-year. On a monthly basis, the core index is forecast to show a 0.1% increase.

The headline PCE index, which includes all components, is projected to ease slightly to 2.2% from 2.3% in March. On a monthly basis, it is forecast to rise 0.1%. Personal income is expected to grow by 0.3% in April. Personal spending is seen slowing to 0.2% from the 0.7% increase in March.

Traders and analysts will be closely examining these figures. The Federal Reserve uses the PCE index as its preferred measure of inflation. A worse-than-expected result might put pressure on the Fed to lower interest rates before the year ends.

However, any surprise to the upside could encourage the Fed to stay cautious. Following last month’s decline in spending and retail sales, the inflation numbers are anticipated to remain around current levels.

The Cleveland Fed Nowcast model also supports expectations of a steady core reading. However, uncertainty around supply chains and geopolitical events could still influence the final results. Therefore, markets may react sharply if the actual data diverges significantly from expectations.

On Monday, May 29, the Federal Reserve is set to release the minutes from its May FOMC meeting. While the meeting concluded with no change to interest rates, traders will be studying the tone of the minutes and any comments made by Fed officials regarding the economic outlook.

Since the last meeting, several Fed officials have maintained a cautious stance. Most have noted that the progress on inflation has been slower than anticipated, rendering it too early to begin cutting rates. The minutes could reveal whether some policymakers advocated for a more aggressive approach or preferred to keep the policy constant for an extended period.

The yield on Treasuries has been increasing recently as investors express concerns about debt. The House approval of a large budget bill, which is expected to increase spending by $4 trillion, has caused long-term yields to rise. Fed officials’ worries about fiscal measures might lead to further changes in the bond and currency markets.

Bitcoin has been facing pressure in recent days, with its value currently trading at $107,592.26 after reaching a higher level earlier in the month. As President Trump announced plans to raise the tariff on EU goods to 50% and schedule it for June 1, the stock market experienced another decline.

The possibility of higher tariffs led many investors to sell off their risk holdings, including cryptocurrencies. The global uncertainty caused Bitcoin to behave more like a risky asset, dropping significantly, although it is usually seen as a hedge. Other digital assets, such as Ethereum, fell alongside Bitcoin.

Technical analysts are keeping an eye on crucial support levels. There is strong support for Bitcoin at $107,252 and $106,080. If these levels are breached, the price could move towards the next target at approximately $104,145. On the plus side, there is some support at around $110,282 and another level at $111,877.

Despite the recent fall, Bitcoin's fundamentals remain strong, with a market capitalization of over $2.15 trillion. However, near-term sentiment is being shaped by macroeconomic developments, including trade policy and interest rate expectations.

While long-term interest in the crypto market from institutions remains high, short-term positioning may shift based on economic updates. This week’s PCE inflation report and Fed minutes may provide new clues on the timing of a potential rate cut, which would affect risk appetite.

Equity markets have already shown signs of caution. The US Dollar Index has weakened, reflecting some expectation that the Fed may eventually ease policy. However, with long-dated Treasury yields rising and debt worries increasing, volatility may persist.

A large volume of trades in crypto markets indicate that institutional investors are still participating. Nevertheless, many financial funds might defer making any moves until they analyze Friday’s data. A high inflation report might trigger a new round of selling in the digital currency space as well as in other risky investments.

If the Fed’s minutes do not appear dovish, it could postpone rate decisions for