Bitcoin (BTC), the preeminent cryptocurrency, witnessed a slight downward shift, dropping to the lower echelons of its trading range around $68,000 following the U.S. Memorial Day. Despite a minor slump to the week’s lowest during Friday morning’s trading session, May has proven to be quite a favorable month for Bitcoin.

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• Bitcoin experiences a minor value dip but remains strong overall in the month of May.
• Economic indicators suggest potential growth for Bitcoin in June.
• CoinDesk 20 outperforms Bitcoin, driven by a significant increase in the value of Ether (ETH).

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Minor Setback for Bitcoin, But June Promises Potential Growth for Leading Cryptocurrency

As the clock struck 11:45 am ET, the cryptocurrency’s value stood at $67,300, reflecting a 1% downturn over the previous day and a marginal 2% drop from its peak of over $69,000 a couple of hours earlier. The broad CoinDesk 20 also observed a 1.1% decrease over the past day.

Despite the mild slump, Bitcoin’s value has ascended by 11% since the onset of May, when it hovered around $60,000. This surge, however, has been overshadowed by the 20% leap of CoinDesk 20, primarily propelled by a hefty 31% surge in the value of Ether (ETH) due to a surprise regulatory U-turn in favor of a spot ETF for the asset.

Potential Catalyst: Economic Climate 

Bitcoin’s relatively steady performance this week, maintaining a range between $67,000 and $69,000, coincided with a turbulent week for other risk assets, including U.S. stocks. Despite close proximity to all-time highs, the Nasdaq and S&P 500 have slumped by roughly 2% and 1.5% this week.

The U.S. economy continues to exhibit signs of stagnation, as the April Core PCE Price Index climbed by 2.8% YoY, mirroring the previous month and meeting experts’ predictions. In contrast, the May Chicago PMI recorded a sharp fall to 35.4, significantly lower than the forecasted 41 and April’s 37.9. Readings this low have been previously recorded only during the 2008/2009 financial crisis and the March/April 2020 COVID lockdowns. The bond market rallied in response to this news, with the 10-year U.S. Treasury yield slipping by 5.5 basis points to 4.50%.

As we transition into June, the upcoming week’s national PMI and employment reports are expected to offer a more lucid picture of the U.S. economy. If these reports confirm the economy’s softening and lower interest rates become more probable, Bitcoin could potentially attempt to surpass its all-time high of over $73,000, recorded in March. On the other hand, robust economic data might push Bitcoin to revisit its May lows.

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