4 Factors That May Affect the Cryptocurrency Market This Week

An important week for the labor market is approaching with four employment-related reports being released alongside the speech of the Federal Reserve Chair and two PMI indices. Meanwhile, trade tensions between the United States and China are escalating. Beijing is reported to have declared that it will "take strong measures to protect its legitimate rights and interests" if the United States continues to "follow its own path and further undermine China's interests." These comments were made after U.S. Treasury Secretary Bessent declared over the weekend that China is "withholding some products that they agreed to sell in our deal." The cryptocurrency market has lost 130 billion dollars in the past week and will experience even more volatility in the future. Economic Event From June 2 To June 6 The global manufacturing purchasing managers' index (PMI) from S&P for May will be released on Monday. This report measures business activity in the manufacturing sector, a key component of the U.S. GDP and a leading economic indicator. Fed Chairman Jerome Powell will also deliver a speech on Monday, and this speech will be closely analyzed for any changes in the central bank's thinking about the economic recovery, the persistence of inflation, and the direction of monetary policy. Tuesday will see the release of April's JOLTS Job Openings data, followed by the ADP Employment report on Wednesday. These reports shed light on the health of the labor market, from employment conditions through private sector hiring to comprehensive employment statistics. Wednesday will also see the global S&P services PMI for May, a report assessing activity in the services sector, which accounts for more than two-thirds of the U.S. economy. Many labor market reports will be released on Thursday with initial jobless claims and the employment report on Friday, which is the most important economic release of the week.

Cryptocurrency Market Outlook The cryptocurrency market capitalization slightly decreased on Monday morning in Asia to $3.4 trillion. However, some assets are showing a slight recovery after last week's losses. Bitcoin rose from a drop below $104,000 on Sunday to regain the $105,800 level during the Asian trading session on Monday. However, it encountered resistance there and began to decline again at the time of writing. Ethereum has recovered to reclaim the $2,500 level but has also encountered resistance right above this level. ETH has been tightly constrained for the past three weeks. Altcoins showed mixed volatility with slight increases in Solana, Tron, Hyperliquid, and Sui, while Bitcoin Cash and Leo experienced declines.