tl;dr
Stock markets gained last week while crypto markets declined slightly. Weaker-than-expected CPI and inflation data supported markets, and Trump administration Middle East deals benefited the AI sector. US Treasury yields rose, with Fed Chair Powell firm on not cutting rates. Moody’s downgrade of the...
Stock markets gained last week while cryptocurrency markets cooled slightly, buoyed by weaker inflation data and significant geopolitical developments, including Trump’s Middle East deals that lent support to AI sector stocks. Simultaneously, US Treasury yields surged amid the Federal Reserve’s firm stance against cutting rates, and Moody’s downgrade of the US credit rating added volatility, enhancing interest in store-of-value assets such as Bitcoin and gold.
Moody’s downgrade of the US credit rating on Friday is expected to trigger market volatility early this week, with investors closely watching upcoming economic indicators. Key data releases include May’s S&P Global Manufacturing and Services PMIs, which will provide insight into the real impact of tariffs and current economic sentiment, particularly in light of recent “soft data” signaling declining US consumer and business confidence.
Despite stable official economic reports suggesting the US economy is holding up reasonably well, backward-looking data may not fully reflect recent tariff developments. Home sales reports this week will shed light on the US housing market but are anticipated to have minimal impact on crypto markets. Asian markets will keep a keen eye on US trade talks, Chinese economic data, and central bank decisions to gauge potential effects on global trade and growth.
In the crypto space, Bitcoin reached near-record highs, touching just below $106,500 before cooling below the $103,000 mark amid a weakening US Dollar. Ethereum declined sharply below $2,400 following a strong previous week, while altcoins exhibited a mixed performance — with Dogecoin, Shiba Inu, and Litecoin gaining steam, contrasting losses in Tron, LEO, and wrapped ETH derivatives. The fluctuating crypto scene underscores growing interest in blockchain innovations emphasizing speed and staking for broader adoption.
Editorial content this week highlights several promising crypto presales, platform reviews, and industry opinions emphasizing the critical role of ultra-fast blockchains and secure staking platforms to win the adoption race in 2025. Investors are encouraged to stay attuned to these developments amid an evolving landscape shaped by macroeconomic forces and technological advancements.
Looking ahead, the market will react to the Moody’s downgrade on Monday, followed by key US economic data releases: crude oil inventory on Wednesday; manufacturing PMI and existing home sales on Thursday; and new home sales on Friday. Given the backdrop of subdued consumer confidence and persistent uncertainties, these data points will provide valuable signals for traders and investors navigating both traditional and crypto markets.