Bitcoin ended May strong, despite a late-week dip. While the Bitcoin price has hovered around $68,000 since the U.S. Memorial Day holiday, it briefly touched its weekly low on Friday morning. This comes after a solid month with an 11% gain from its May opening around $60,000. However, this falls short of the broader cryptocurrency market's 20% increase, aided by Ether's (ETH) 31% increase due to potential spot ETF approval.
Investors have been keeping a tight eye on bitcoin trading, particularly in light of the recent swings near $68,000. The anticipation of incoming economic data has cryptocurrency aficionados wondering if Bitcoin will surpass its past highs. Given its continued dominance in the digital currency market, Bitcoin's success serves as a crucial barometer for the industry as a whole.
The next move for Bitcoin might hinge on the broader economy. Its recent sluggishness within the $67,000–$69,000 range mirrored declines in riskier assets like U.S. stocks (Nasdaq down 2%, S&P 500 down 1.5%). This coincides with signs of stagflation. Inflationary pressures remain, with the April Core PCE Price Index meeting expectations at 2.8% year-over-year. However, economic data like the disappointing May Chicago PMI (35.4) suggests a potential slowdown, similar to the 2008/2009 financial crisis or the early 2020 lockdowns. This triggered a bond market rally, with the 10-year U.S. Treasury yield dropping.
June brings a chance for a clearer economic direction. Key data points include Monday's national PMI report and Friday's employment report. Signs of a weakening economy and potential interest rate cuts could propel Bitcoin past its March peak of $73,000. Conversely, strong economic data might push Bitcoin back towards its May lows.
