The crypto market is reacting to recent economic data, including US employment figures and earnings from major tech companies. The upcoming conference by Fed Chair Jerome Powell is expected to further influence market dynamics. While Bitcoin may face corrections, certain niches like meme cryptocurrencies and AI tokens are still thriving, suggesting opportunities amidst volatility.
The recent trends in the crypto market have attracted attention as major economic events unfold. We spoke to Vugar Usi Zadeh, COO of Bitget, one of the largest global crypto exchanges, to unpack these developments and their potential implications.
Last week, two significant news stories influenced the crypto landscape: the US labour market’s macroeconomic data and the quarterly earnings from prominent tech giants. The highlight of the week is the upcoming conference featuring Jerome Powell, the Chair of the US Federal Reserve. Investors are closely watching the tone of statements made, as even minor phrasing can sway the markets dramatically.
In a surprising turn, the earnings reports from Big Tech revealed a striking resilience amid economic uncertainties. Companies like Alphabet, Apple, Microsoft, Meta, and Amazon reported combined revenues of $118.9 billion for the first quarter of 2025, marking a year-over-year increase of 29.2%. This growth underscores a robust demand for cloud computing, digital ads, and AI-driven solutions, which could have ripple effects across various market sectors, including crypto.
The latest Non-Farm Payrolls data indicated a rise of 177,000 jobs in April, notably exceeding analyst predictions, which anticipated between 160,000 to 165,000. This positive employment data led to a strengthening of the dollar and an uptick in volatility across riskier asset markets, drawing cryptocurrencies into the mix. In immediate response, Bitcoin traders began to close long positions amidst fears of a tighter monetary policy from the Fed. Strong employment figures tend to bolster arguments for maintaining high interest rates longer.
As the week progresses, all eyes are on the Federal Reserve conference, where Powell will touch on critical topics. Prominent questions include his perspective on Trump’s trade tariffs, potential effects on inflation, and whether the recent decline in inflation is significant enough to prompt a policy shift. Anticipation surrounds the possibility of interest rate cuts in June, making Powell’s statements all the more crucial.
The interconnected nature of these topics means that Powell’s vague comments could instigate market shifts, particularly in the sensitive crypto arena. Experienced traders view current news as mere “fuel” for pricing strategies rather than catalysts for genuine market movement. It’s a reminder that liquidity often drives price action.
Despite concerns about Bitcoin potentially undergoing a correction, certain market sectors still show promise. For instance, meme-based cryptocurrencies, including Dogwifhat and PEPE, continue to thrive despite a tough environment. Additionally, AI tokens such as Fetch.ai and Render are gaining traction, riding on the AI wave. PayFi—an intersection of payment systems and DeFi—is also catching the eye of venture capitalists. This divergence may signal to traders that even if Bitcoin faces turbulence, other niches could offer profitable routes.
