Crypto Market News This Week: 4 Events That Will Move Bitcoin and Altcoins

Key Insights

• There will be some notable crypto market news events this week.
• Strategy hinted that it restarted its Bitcoin purchases.
• The US will publish the latest consumer inflation report.

The crypto market started the week on a stronger footing, with Bitcoin and several altcoins posting gains after a difficult period of selling pressure. Total cryptocurrency market capitalization climbed back above $2.1 trillion as traders monitored several major developments that could influence price action over the coming days.

Among the strongest performers were Zcash, Dash, Siren, and Audiera, which rebounded after heavy declines last week.

Investors are now focused on several major catalysts, including Strategy’s Bitcoin purchases, the latest U.S. inflation report, ETF flow data, and the highly anticipated SpaceX initial public offering (IPO).

The crypto market came under intense pressure last week after Strategy revealed that it dumped some coins a week earlier. In a note, Michael Saylor said that the company sold 32 coins.

This was a big shock as the company had spent billions of dollars accumulating Bitcoin in the past five years. Saylor and the team have long maintained that they would not sell any Bitcoins.

As a result, the fear that the company was capitulating following Bitcoin’s underperformance pushed more people to sell their coins. Indeed, data shows that spot Bitcoin ETFs shed over $1 billion in assets last week.

Michael Saylor has already hinted that the company bought BTC last week. In a statement, he said that it was a good time to add more dots. Strategy’s CEO, Phon Le said that its corporate strategy was to increase the net Bitcoin per share over time.

One key reason why Bitcoin and most altcoins plunged last week was the fact that the US published strong jobs numbers. On Friday, a report by the Bureau of Labor Statistics (BLS) showed that the economy created 172k jobs in May, the best performance in months. The unemployment rate remained at 4.3%.

Meanwhile, ADP, which conducts a private sector survey, said that the employers added 122k jobs. Also, the number of US job openings is rising ahead of the World Cup event.

Therefore, these numbers led to a jump in the US government bond yields as investors predicted that the Fed would hike interest rates. Bitcoin and most altcoins often underperform when the Fed hikes interest rates.

The next important macro data to watch this week will be the US consumer inflation report on Wednesday. Economists polled by Reuters expect the data to reveal that the headline CPI jumped 4.2% in May this year. Such a number will signal that the inflation is moving further away from the Federal Reserve target of 2.0%. As a result, the Fed will likely intervene by hiking interest rates.

The biggest corporate event this week will be the upcoming SpaceX IPO, which will happen on June 12. This is a major event as the company plans to raise $75 billion in its IPO. Nonetheless, investors have opened trades worth $150 billion.

The IPO will be notable, especially among AI coins like Humanity, Worldcoin, and Near Protocol. Indeed, these coins have more than doubled this year despite the ongoing weakness in the crypto market. The risk, however, is that these AI coins may retreat as investors sell the SpaceX IPO news.

The other top crypto market news to watch this week will be the Bitcoin and Ethereum ETF inflows and outflows. These funds have shed billions of dollars recently, contributing to the ongoing weakness.

For example, spot Bitcoin ETFs have shed over $4 billion in assets in the last four consecutive weeks. Ethereum funds have also shed over $1 billion this year.

This sell-off happened as investors capitulated after Bitcoin’s long track record of weakness. Also, they sold their ETFs amid the ongoing rotation from crypto to the stock market, especially in areas like AI and space. Therefore, signs that the industry is gaining assets will be bullish for the crypto industry.

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