Bitcoin holds its ground above $61,000, awaiting a decisive directional cue as the Federal Reserve’s preferred inflation measure, the core Personal Consumption Expenditures (PCE), looms on the horizon. Economists anticipate a slowdown in the annualized inflation rate to 2.6% for May, down from 2.8%, according to Bloomberg. Although this would mark the lowest reading in over two years, it remains above the Fed’s 2% target. “A lower-than-expected PCE figure could signal continued inflation deceleration, potentially buoying cryptocurrencies in the coming months,” noted Valentin Fournier, a digital assets analyst at the advisory firm brn.

Meanwhile, Solana’s SOL token has eclipsed Ethereum’s ETH this week following VanEck’s filing of an S-1 registration statement for its VanEck Solana Trust. “We view SOL as functioning akin to digital commodities like bitcoin and ETH,” asserted Matthew Sigel, VanEck’s head of digital assets research, in a post on X, advocating that SOL is a commodity, not a security. Market consensus suggests that CME futures are a prerequisite for ETF approval, a feature currently absent for SOL. Conversely, ether futures have been trading on the CME for some time, and spot ether ETFs are anticipated to launch in the U.S. in July. Presently, the SOL/ETH ratio leans bullish, with a 12% rise this week, reversing last week’s decline with a bullish engulfing candlestick pattern.

In the political sphere, blockchain bettors exhibited skepticism regarding President Joe Biden’s performance in the initial debate of the 2024 presidential election, boosting former President Donald Trump’s odds to as high as 67%. Betting markets currently have approximately $188 million at stake, with around $23 million wagered on Trump and $21 million on Biden. Analysts at Bitfinex suggest that a Trump victory could herald a shift towards more crypto-friendly regulations. “A Trump administration might prioritize establishing a clear and supportive regulatory framework, fostering innovation and investment in the crypto sector. This could lead to increased adoption of digital assets and a deeper integration of cryptocurrencies into the financial system, potentially spurring further industry growth,” Bitfinex analysts conveyed in an email.

Lastly, Google Trends indicates that interest in the search query “NVDA” is approaching peak popularity, with a score nearing 100 over the past five years. This metric suggests heightened attention from general or retail investors, often viewed as a lagging indicator for market trends. Thus, NVDA and other AI-related assets may have reached a temporary zenith.