Crypto Market on High Alert Ahead of Pivotal Week

The crypto market is bracing for another pivotal week, with macroeconomic data from the US set to dominate headlines. PCE inflation, jobless claims, and housing market data will be closely watched by investors, who are seeking clarity on the Federal Reserve's rate-cutting intentions.

A key indicator of inflationary pressures is the PCE index, which the Fed considers a benchmark for assessing inflation. If the April reading shows high core PCE levels, talk of rate cuts may take a back seat, leading to increased pressure on BTC and other risk assets.

The crypto market has become increasingly tied to US bond yields, with rising interest rates making it more expensive for investors to hold volatile assets like bitcoin. Short-term bonds will be closely watched as they signal investor expectations of future rate cuts.