According to @KobeissiLetter, the cryptocurrency market experienced a broad selloff, with Bitcoin (BTC) falling over 2.5% to below $106,000, while altcoins such as Ether (ETH), Solana (SOL), and Dogecoin (DOGE) saw steeper declines of 5-7%. The source attributes this downturn in risk assets to geopolitical factors, including President Trump's threats of renewed tariffs and heightened tensions with Iran. For the week ahead, traders are focused on two major events: Federal Reserve Chairman Jerome Powell's semi-annual testimony and the release of the core Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation metric. The source notes that dovish hints from Powell regarding interest rates could fuel risk-taking and benefit BTC. The consensus forecast for the core PCE data is a 0.1% month-on-month increase, which could support the case for rate cuts. However, analysts at ING suggest only one rate cut may occur this year, potentially in December, creating uncertainty for traders.

According to @WhiteHouse, former President Trump's social media post suggesting economic growth will offset deficits from a proposed $3.8 trillion tax-and-spending bill has strengthened the bull case for Bitcoin (BTC) and gold. Crypto analyst Will Clemente reacted by stating such loose fiscal policy makes holding long-term U.S. Treasuries less attractive while reinforcing the argument for owning hard assets like Bitcoin as a hedge against inflation and currency debasement. For the week ahead, traders are focused on Federal Reserve Chairman Jerome Powell's testimony and the core PCE inflation data. According to Chris Weston of Pepperstone, dovish signals from Powell could fuel risk-taking and benefit BTC. The market consensus for the core PCE data is a 0.1% month-on-month increase, which could bolster expectations for a Fed rate cut. Based on the source's technical analysis, BTC established support at $107,300 while trading in a range between $107,194 and $108,489.

According to @KobeissiLetter, traders should focus on Federal Reserve Chairman Jerome Powell's upcoming testimony and the core Personal Consumption Expenditures (PCE) price index release for potential Bitcoin (BTC) market catalysts. The analysis notes that any dovish hints from Powell could spur risk-taking, benefiting BTC, which has maintained levels above $100,000 amid recent geopolitical tensions. Following the recent Federal Reserve meeting where rates were held steady, policymakers projected weaker GDP growth and higher inflation for the year, with BTC showing little reaction and holding around $104,200. While markets anticipate rate cuts, analysts at ING suggest potential delays due to the inflationary impact of tariffs, possibly resulting in a single, larger 50 basis point cut later this year if the job market weakens. The consensus for the upcoming core PCE data is a 0.1% month-on-month increase, which could support the case for rate cuts.

According to GoMoon Macro's latest calendar update on Twitter, traders should closely monitor Thursday's US GDP release and Friday's PCE inflation data, as these macroeconomic indicators often trigger high volatility in the cryptocurrency markets including BTC and ETH (Source: @GoMoonMacro, Twitter). Historical data shows that significant moves in Bitcoin and Ethereum prices often correlate with major economic releases, making this week especially important for risk management and short-term trading strategies.

According to Stock Talk (@stocktalkweekly), the latest headline PCE inflation rate stands at 2.1%, and the 'supercore' PCE has turned negative for the first time since COVID, signaling softening inflationary pressures. Despite these data points and heightened economic uncertainty, CME FedWatch data shows that market odds for a Federal Reserve rate cut at the upcoming June 18th meeting remain low at just 5% (Source: Stock Talk on Twitter, CME FedWatch). For crypto traders, persistent high rates may dampen risk appetite and limit immediate upside, but signs of cooling inflation could strengthen the narrative for future policy easing, supporting medium-term bullish sentiment in leading cryptocurrencies like Bitcoin and Ethereum.

According to The Kobeissi Letter, this week’s key US economic events include the Memorial Day market closure on Monday, CB Consumer Confidence data release on Tuesday, Federal Reserve Meeting Minutes on Wednesday, Q1 2025 US GDP data on Thursday, and both April PCE Inflation data and MI Consumer Sentiment data on Friday (source: @KobeissiLetter, May 25, 2025). Each event holds significant trading relevance for the cryptocurrency market, particularly the Fed minutes and PCE inflation print, which are closely watched for hints on US monetary policy and inflation direction. Crypto traders should monitor volatility in Bitcoin and Ethereum prices around these releases, as major macroeconomic data historically triggers sharp moves in digital asset markets.

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 The Kobeissi Letter, the new tariffs announced by Trump, combined with expected retaliatory measures, are projected to contract GDP by between -3% and -4% if these tariffs persist long-term. Additionally, PCE inflation is anticipated to rise toward 4% in the coming months as price increases take effect. This outlook suggests a cautious approach for traders, particularly in sectors vulnerable to tariff impacts.

According to The Kobeissi Letter, PCE inflation is considered the final critical indicator as both PPI and CPI inflation metrics are showing signs of rebounding. This development is crucial for traders as it may influence market positioning and trading strategies. The Kobeissi Letter also highlights their impressive track record with over 370% gains since 2020, suggesting a strong historical performance in market prediction and trading strategy formulation.

According to The Kobeissi Letter, PCE inflation is anticipated to be a critical determinant for trading strategies as both PPI and CPI inflation are experiencing an uptrend. This suggests potential adjustments in market positions to accommodate inflationary pressures. The Kobeissi Letter highlights their trading success, noting a return of over +370% since 2020, and offers subscription services for detailed trade insights. This information is crucial for traders looking to navigate inflation-driven market dynamics effectively.