Bitcoin hovers near $76,700 as markets await key economic data and geopolitical shifts

Cryptocurrency markets showed mixed movements over the weekend, with Bitcoin hovering near $76,700. The digital asset rose by 2% in the last day but fell by the same margin over the past week. Meanwhile, broader financial markets are bracing for key economic data and geopolitical developments this week.

Ethereum also traded around $2,100 as traders kept an eye on potential shifts in global risk sentiment. U.S. markets will start the week with a holiday, as both equity and bond trading halts for Memorial Day on Monday. Attention then turns to Thursday, when April’s personal income and spending figures—including the closely watched PCE inflation reading—will be released. The same day will bring revised GDP estimates for the first quarter of 2026, alongside new home sales data.

A stronger GDP reading could ease concerns about slowing economic growth, potentially lifting investor confidence. However, hotter inflation figures may dampen hopes for interest rate cuts, putting pressure on risk assets like cryptocurrencies. Higher inflation tends to support the U.S. dollar and push Treasury yields up, often weighing on Bitcoin and altcoins.

Beyond economic data, geopolitical tensions remain in focus. Rumours of a possible U.S.-Iran agreement circulated over the weekend, briefly boosting markets. U.S. stocks gained roughly $400 billion in value at Friday’s open after reports suggested progress in talks. If confirmed, a deal could reduce oil-market volatility, indirectly supporting Bitcoin, Ethereum, and crypto-related equities by lowering broader risk aversion. The week ahead will test market sentiment with fresh inflation and growth figures. A confirmed U.S.-Iran agreement could further stabilise risk assets, while higher-than-expected inflation might limit crypto gains. Traders will watch how Bitcoin and Ethereum react to these shifting economic and political conditions.