According to The Kobeissi Letter, this week features several high-impact US economic events including the CB Consumer Confidence data on Tuesday, Federal Reserve meeting minutes on Wednesday, US Q1 2025 GDP data on Thursday, and April PCE Inflation data on Friday (source: @KobeissiLetter, May 25, 2025). These releases are critical for crypto traders as they historically drive volatility in both traditional and digital asset markets. The PCE Inflation data especially influences expectations around Federal Reserve rate decisions, directly affecting Bitcoin and Ethereum price action. US markets will be closed on Monday for Memorial Day, causing a condensed trading week where reaction to data releases could be amplified. Crypto traders should monitor these events closely for potential short-term opportunities.

According to The Kobeissi Letter, the S&P 500 fell more than 2% intraday as traders reacted to the latest Q1 GDP report, which signaled slowing economic growth and increased the perceived risk of a recession. This sharp decline triggered heightened volatility and risk-off sentiment across equities, prompting investors to reassess positions in anticipation of further downside. For active traders, these market moves are a signal to monitor support levels and consider hedging strategies as macroeconomic uncertainty rises (Source: The Kobeissi Letter, April 30, 2025).

According to @RhythmicAnalyst on Twitter, recent GDP and PCE data signal increasing recession risks for financial markets. The analysis highlights that Trump’s new tariffs are straining global trade flows, while Federal Reserve Chair Jerome Powell’s delayed monetary response has limited economic stimulus options. Meanwhile, persistently high consumer credit usage, as shown in the latest Federal Reserve economic data, further pressures household balance sheets. Traders should monitor these macroeconomic indicators closely, as sustained negative trends in GDP growth and rising PCE inflation could trigger heightened market volatility and potential downturns in risk assets. (Source: @RhythmicAnalyst, April 30, 2025)

According to @MilkRoadDaily, this week is significant for traders as over $14 billion in options are set to expire on Friday, which could lead to increased volatility in the cryptocurrency markets. Additionally, the release of macroeconomic data, including GDP figures on Thursday, may influence market sentiment and trading decisions.