The week from 26–30/5/2025 promises significant volatility in the crypto market as important economic events in the US take place, including speeches by the Federal Reserve (Fed) Chair, the May Fed meeting minutes, PCE inflation data, and the expiration of Bitcoin options worth 13.8 billion USD. This news could shape the price trend of Bitcoin, currently trading at 108,904 USD (CoinMarketCap, 26/5/2025). The article summarizes the details of these events, their impact on crypto, and lessons for investors.
Important Economic Events
Monday, 26/5: Memorial Day, US stock markets are closed, but the speech by Fed Chair Jerome Powell may guide market sentiment. Comments on interest rates will directly impact Bitcoin, which is sensitive to monetary policy.
Tuesday, 27/5: Minneapolis Fed President Neel Kashkari and New York Fed President #Fed John Williams speak in Tokyo. The S&P CoreLogic Case-Shiller home price index (20 cities) is released, reflecting the health of the real estate market and indirectly impacting crypto investment sentiment.
Wednesday, 28/5: Neel Kashkari continues to speak, and the May Fed meeting minutes are released, revealing views on inflation and interest rates. If the Fed signals a rate hike, Bitcoin may face downward pressure as investors shift to safe assets.
Thursday, 29/5: Data on unemployment claims (expected 228,000, previously 227,000) and revised Q1 GDP (expected -0.3%) will be released, indicating the health of the US economy. Speeches from the Richmond, Chicago, San Francisco, Dallas Fed presidents, and Governor Adriana Kugler will provide further clues on monetary policy.
Friday, 30/5: PCE inflation index (expected 2.2%, previously 2.3%) and Core #PCE (expected 2.6%) – the Fed's preferred inflation measure – will be released, potentially affecting interest rate expectations. On the same day, Bitcoin options worth 13.8 billion USD expire, usually causing price volatility due to portfolio rebalancing. The speech by San Francisco Fed President Mary Daly will conclude the week.
Impact on the crypto market
US economic events increasingly impact crypto, especially Bitcoin. With a market cap of 2.15 trillion USD (CoinMarketCap, 26/5/2025), Bitcoin is sensitive to Fed policy. If PCE is lower than expected, the Fed may keep interest rates, supporting Bitcoin's price increase. Conversely, signals of monetary tightening could exert downward pressure. The expiration of Bitcoin options on 30/5 will amplify volatility, with 60% of contracts being call options, according to Deribit.
Positive market sentiment, with Bitcoin surpassing the 50 and 200-day moving averages, but investors need to be cautious. Altcoins like Ethereum (4,200 USD, CoinMarketCap) are also indirectly affected. This event highlights the role of reputable exchanges like Binance in providing transparent trading data.
Warning on US economic impact
US economic news, from PCE inflation to Fed speeches, is dominating the crypto market. Higher-than-expected PCE data may prompt the Fed to raise interest rates, reducing cash flow into crypto. The Fed meeting minutes and Bitcoin options expiration will create short-term volatility, requiring investors to monitor closely. Monetary policies affect not only Bitcoin but also stablecoins and DeFi, necessitating flexible investment strategies.
Lessons for Investors
Monitor economic data: PCE, GDP, and Fed speeches are key factors shaping Bitcoin's price.
Technical analysis: Consider support at 100,000 USD and resistance at 120,000 USD (Binance, 26/5/2025).
Portfolio diversification: Combine Bitcoin with stablecoins (USDT, $USDC ) to reduce volatility risk.
Use reliable sources: Check data through Binance, CoinMarketCap to make informed decisions.
Investor Suggestions
Follow Jerome Powell's speech and PCE data on CoinMarketCap, Binance.
Prepare for price volatility on 30/5 due to Bitcoin options expiration.
Assess the impact of Fed policy on the crypto portfolio.
Risk Warning
Investing in cryptocurrency, including Bitcoin, carries high risks due to price volatility and the impact of US economic news. The information in this article is for reference only and is not investment advice. Please conduct thorough research (DYOR) before making any decisions. #anhbacong