Inventory markets notched stable positive factors 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 have 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 corresponding 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 might set the stage for additional volatility this week.
Could’s S&P International 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 mirror enterprise and client sentiment.
Most official economic data has urged that the US financial system is holding up fairly effectively. Nevertheless, 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 true influence.
There are additionally some house gross sales reviews coming this week, which make clear the US housing market however have nearly no influence on crypto asset markets.
Key Occasions This Week:
1. Markets React to Moody’s Downgrade – Monday
2. US Crude Oil Stock knowledge – Wednesday
3. S&P International Manufacturing PMI knowledge – Thursday
4. April Present House Gross sales knowledge – Thursday
5. April New House Gross sales knowledge – Friday
6. Whole of 14 Fed speaker…
— The Kobeissi Letter (@KobeissiLetter) May 18, 2025
‘Mushy knowledge’, corresponding to exercise and confidence surveys, “paint a doubtlessly grimmer image, significantly within the US the place client 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 knowledge from China and a central financial institution price announcement.
Crypto Market Outlook
Crypto markets began the brand new week solidly with Bitcoin closing its highest-ever every day and weekly candles at just under $106,500.
Nevertheless, 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 degree following a stable week.
The altcoins have been a combined bag, with positive factors for Dogecoin, Shiba Inu, and Litecoin, whereas Tron, Leo, and wrapped ETH derivatives misplaced floor.
Binance Free $600 (CryptoPotato Unique): Use this link to register a brand new account and obtain $600 unique welcome supply on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE place on any coin!
The content published on Finance Insider Today is for informational and educational purposes only. It does not constitute financial advice, investment advice, or any other form of professional advice. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Finance Insider Today is not responsible for any financial losses resulting from decisions made based on information published on this website. Past performance is not indicative of future results. Financial markets carry significant risk. Never invest more than you can afford to lose.
