- The digital currency ecosystem is awake with new growth potential.
- Part of what is building sentiments is the projected positive economic data scheduled to be unveiled this week.
Investors are advised to keep an eye on certain economic and financial data that had an impact on trading the previous week, especially after crypto prices plunged as a result of the enforcement actions against Binance and Coinbase by the Securities and Exchange Commission (SEC). Bitcoin (BTC) and other crypto were affected in the crackdown of these digital assets service providers.
The price of the largest cryptocurrency by market capitalization came crashing to $25,400. So far, it corrected to a new multi-month low of $24,750 last week.
The token was faced with several liquidation moves which threatened its chart mark at $25,000, it has however remained resilient and is gradually recovering. At the same time, news about BlackRock’s application for spot Bitcoin Exchange Traded Funds (ETF) played a part in pushing the cryptocurrency on the bullish front. Currently, BTC is trading at $26,429.81.
Economic Data to Cause Reaction in The Crypto Market
Some economic data which are likely to influence the new trading week is first the fact that the trading week will be ushered by new data from the U.S. housing market. Also, the preliminary figures for the U.S. building permits for May are scheduled to be posted on Tuesday.
Notably, the volume of permits granted is an indicator of the well-being of the U.S. housing market. Analysts have already predicted a slight increase from 1.417 million in April to 1.435 million in May.
The United States Federal Reserve Chairman Jerome Powell is billed to face the U.S. monetary policy hearings in the Senate and House of Representatives on Wednesday and Thursday, answering questions from politicians.
This hearing takes place every year and the questions usually bother on the assessment of the economic and financial policy of the Federal Reserve Bank (Fed). These politicians, both from the Democratic and Republican parties would expect concrete justification for all of the FED’S actions for the last year.
Any unclear statement from Powell will spark reactions in the stock market. Any major price movements in the U.S. dollar index (DXY) and the U.S. stock market will translate to a reaction in BTC price and that of other cryptocurrencies.
On the second day of Powell’s hearing, the current sales figures for existing properties in the U.S. housing market will also be presented. The working week will end on Friday with the presentation of the purchasing managers’ indices from the service sector for the U.S. All of these economic data are likely to impact on the prices of BTC and other tokens this week.
Furthermore, the decision of the SEC to settle with Binance as requested by U.S District Judge Amy Berman Jackson to avoid asset freeze, has incited a recovery for the broad crypto market.
