Altcoins
Bitcoin and Altcoins Under Pressure Ahead of Fed’s May 1 Interest Rate Decision
Over the past weekend, the broader cryptocurrency market remained under pressure. THE Bitcoin Price faced a further correction of 2.2%, falling below $62,500. On the other hand, the altcoin space faced even greater selling pressure, with the top ten altcoins correcting between 4-10%.
Fed interest rate decision on May 1
This week brings key economic events for the United States, starting with the Federal Reserve’s highly anticipated interest rate decision scheduled for May 1. Analysts predict a 95.6% chance that the Fed will keep interest rates at their current levels. Additionally, on May 3, the United States will release the April unemployment rate. Expectations of a cut in US interest rates this year have narrowed to just one.
However, worrying data from the United States emerged this week. A weaker than expected Printing GDP suggests a slowing economy, while higher Core PCE numbers signal continued inflation concerns, posing challenges for the Federal Reserve.
Although there are concerns that the United States is entering a stagflation scenario characterized by negative GDP growth and high inflation, this remains speculative at this time. Market sentiment has changed accordingly, with expectations now pricing in just one interest rate cut for 2024. This stands in stark contrast to initial forecasts of seven cuts at the start of the year and three in March.
What lies ahead for Bitcoin and Altcoins?
During the recent market update, Bitcoin (BTC) volatility saw a significant compression, dropping from 70% to 50%. At the same time, the disadvantages are increasing Risk related to Ethereum (ETH) Reversals intensified to -13% early on, suggesting potential doubts about further delays in SEC approval. Ether spot ETF.
This development begs the question: has market sentiment changed or is this just a brief pause in a broader uptrend? Amid these uncertainties, attention is turning to a potential positive catalyst on the horizon: the start of negotiations on Hong Kong Bitcoin and Ethereum Spot ETF next week.
Anticipation is growing as market participants view this event as a potential gateway for the influx of Asian institutional capital into the crypto space.