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Crypto Market Faces Pressure as Investors Await Fed’s Interest Rate Decision

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Crypto Market Faces Pressure as Investors Await Fed's Interest Rate Decision

  • The highly awaited interest rate decision of the Fed is set to take place on May 1st.
  • United States unemployment data for April will also be released on May 3.

There was no relief in sight for the wider crypto market during the past weekend. The price of Bitcoin saw a further 2.2% decline, dropping below $62,500. At the time of writing, the Bitcoin price managed to climb above the $62,500 threshold and is now trading at $62,983.

Similar is the case with Ethereum and most other altcoins. At the time of writing, ETH is trading at $3149, down 4.16% in the last 24 hours as per data from CoinMarketCap. Meanwhile, selling pressure in the cryptocurrency market has intensified, with the top ten cryptocurrencies seeing corrections ranging from 4-10%.

High Volatility Expected

The highly awaited interest rate decision of the Federal Reserve is set to take place on May 1st, and this week brings with it other important economic events for the US. With a 95.6% chance, analysts say the Fed will keep interest rates where they are.

United States unemployment data for April will also be released on May 3. Fewer than two interest rate cuts this year are expected in the United States. Crypto investors and traders are keenly awaiting this data as it might cause huge volatility in the market.

On the other hand, some worrying statistics came out of the US this week. The Federal Reserve has difficulties when GDP prints lower than anticipated and Core PCE statistics show continuing inflation concerns.

At this point, concerns about the United States potentially experiencing stagflation, defined as low GDP growth and high inflation, are purely theoretical. As a result, market sentiment has changed, and now just one interest rate drop is anticipated until 2024. 

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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