With a fresh rate rise announcement this week, the US central bank will issue what has become a monthly dictation of what markets do. Bitcoin (BTC) enters the new week with a lot of ground to make up after having its worst April ever.
BTC/USD closed the month solidly inside its 2022 trading range, and worries are now circulating that $30,000 or even below is coming. However, as May begins, the mood has improved, and while crypto remains mostly influenced by macroeconomic reasons, on-chain data is satisfying rather than alarming experts. The following days may be a matter of knee-jerk reactions as markets strive to align themselves with central bank policy, with a decision on US economic policy likely on May 4. This week’s Bitcoin price action will be shaped by these and other variables.
What are the Impacts of Fed’s Meeting?
This week, macro markets are on edge, as is customary, as another Federal Reserve meeting in the United States approaches. As global inflation continues to rise, Chair Jerome Powell is anticipated to follow through on his earlier promises and announce crucial interest rate rises. The severity and speed with which they are implemented are up for discussion, as is whether markets have already “priced in” choices.
Any shock is expected to cause at least temporary volatility throughout markets, and crypto has been no exception in the last six months or so. The Federal Open Markets Committee (FOMC) meeting on May 3 and 4 will thus be the focus of attention.
“First, there was the Federal Reserve. After that, there’s the Netflixpocalypse. Then there was the invasion by the Russians. Then there are the penalties. Then came the Fed and the world’s largest-ever treasury dump. It was earnings week this week. The Fed will meet again next week,” said macro expert Alex Krueger over the weekend: “The market’s destiny will be decided by the Fed’s QT statement on Wednesday.” he added.
