3 Things That Could Impact Crypto Markets in Week Ahead 

Inventory markets notched strong positive aspects final week whereas crypto markets misplaced a little bit of floor and cooled barely.

The weaker-than-expected readings on CPI and inflation expectations hold markets buoyed, whereas the Trump administration’s Center East offers had been a boon for the AI sector.

Moreover, US Treasury yields are surging once more. “Commerce offers, recession worries, decrease inflation, and slowing GDP all can’t get decrease yields,” mentioned the Kobeissi Letter, which added, “In the meantime, Fed Chair Powell stays adamant on not slicing charges.”

Moody’s downgrade of the US credit standing on Friday was additionally excellent news for store-of-value property equivalent to Bitcoin and gold.

Financial Occasions Could 19 to 23

There could also be some market response to the Moody’s downgrade on Monday, which may set the stage for additional volatility this week.

Could’s S&P World Manufacturing and Companies PMI (buying supervisor’s index) preliminary readings are due on Thursday. These main financial indicators gauge exercise within the manufacturing and companies sectors, which replicate enterprise and shopper sentiment.

Most official economic data has steered that the US economic system is holding up moderately effectively. Nonetheless, they’ve been extra backward-looking and don’t but correctly seize the aftermath of President Trump’s announcement of widespread tariffs in early April. PMIs might present a extra correct image of the actual impression.

There are additionally some dwelling gross sales stories coming this week, which make clear the US housing market however have nearly no impression on crypto asset markets.

Key Occasions This Week:

1. Markets React to Moody’s Downgrade – Monday

2. US Crude Oil Stock information – Wednesday

3. S&P World Manufacturing PMI information – Thursday

4. April Present Residence Gross sales information – Thursday

5. April New Residence Gross sales information – Friday

6. Whole of 14 Fed speaker…

— The Kobeissi Letter (@KobeissiLetter) May 18, 2025

‘Comfortable information’, equivalent to exercise and confidence surveys, “paint a doubtlessly grimmer image, significantly within the US the place shopper and enterprise confidence are nonetheless deteriorating,” mentioned Citigroup analysts, according to the WSJ.

In Asia, markets will look ahead to progress in commerce talks between the US and regional gamers along with key information from China and a central financial institution fee announcement.

Crypto Market Outlook

Crypto markets began the brand new week solidly with Bitcoin closing its highest-ever each day and weekly candles at slightly below $106,500.

Nonetheless, the asset has began to chill throughout Monday morning buying and selling in Asia, dropping again beneath $103,000 following its multi-month excessive.

“Because the US Greenback weakens and uncertainty rises, Bitcoin and Gold are thriving,” mentioned Kobeissi.

Ethereum has weakened considerably, falling nearly 3% on the day again beneath the $2,400 stage following a strong week.

The altcoins had been a combined bag, with positive aspects for Dogecoin, Shiba Inu, and Litecoin, whereas Tron, Leo, and wrapped ETH derivatives misplaced floor.