Fed ‘will determine the fate of the market’ — 5 things to know in Bitcoin this week
Bitcoin (BTC) starts a new week with much to make up for after its worst April performance ever.
The monthly close placed BTC/USD firmly within its established 2022 trading range, and fears are already that $30,000 or even lower is next.
That said, sentiment has improved as May begins, and while crypto broadly remains tied to macro factors, on-chain data is pleasing rather than panicking analysts.
With a decision on United States economic policy due on May 4, however, the coming days may be a matter of knee-jerk reactions as markets attempt to align themselves with central bank policy.
Cointelegraph takes a look at the these and other factors set to shape Bitcoin price activity this week.
Macro markets are — as is now the standard — on edge this week as another U.S. Federal Reserve meeting looms.
As inflation runs rampant worldwide, it is expected that Chair Jerome Powell will make good on his previous pledges and announce key interest rate hikes.
Wednesday will be pivotal. The Fed is expected to confirm a $95B per month sell program which has not yet been unleashed on the market. https://t.co/gRRwd059Lw
How severe and how quickly they are applied is a matter for debate, and a separate debate concerns whether markets have already “priced in” various options.
Any shocks are likely to spark at least temporary volatility across markets, and over the past six months or so, crypto has been no exception.
Attention is thus on the Federal Open Markets Committee (FOMC) meeting to be held on May 3 and May 4.
“First came the Fed. Then the Netflixpocalypse. Then the Russian invasion. Then the sanctions. Then the Fed and the largest treasury dump ever. This week it was earnings. Next week the Fed again,” macro analyst Alex Krueger summarized
Read more on cointelegraph.com
