The cryptocurrency community is excited about potential events that might affect Bitcoin and the larger crypto market as May gets underway. A couple of these significant May events are highlighted by Wu Blockchain with timelines.
On Wednesday, May 1, traders will be watching the Fed’s interest rate decision. It is largely anticipated that the central bank would maintain current interest rates. The market will be looking to Fed Chair Jerome Powell for hints on what has to happen before rates are lowered.
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Powell will hold a news conference during this week’s meeting, which comes after economic data showed persistent wage pressure and a decline in consumer confidence. Powell noted the labour market’s ongoing strength and the lack of new progress in reining down inflation when he last spoke. It’s doubtful that the most recent statistics would make him reconsider, especially in light of the optimism surrounding Friday’s excellent employment report.
The United States is expected to issue the April CPI on May 15. The cryptocurrency world is also anticipating the US Securities and Exchange Commission’s (SEC) possible approval of Spot Ethereum ETFs this month. A favourable result might put pressure on prices to rise.
VanEck’s application for an ETH spot ETF is expected to be answered by the SEC on May 23. The application for a BTC spot option ETF is expected to be answered on May 29.
With investors pulling out of cryptocurrencies, Bitcoin had a roughly 9% decline on Wednesday, making it the worst monthly performance in April since late 2022. From highs of $64,727, Bitcoin extended its losses into the second day, hitting an intraday low of $56,500.
Deeper losses in Bitcoin appear to be a sign that higher-for-longer interest rates may have an effect on cryptocurrencies.
April saw a roughly 16% decline in Bitcoin as interest in US spot-Bitcoin exchange-traded funds cooled off after earlier pushing the currency to all-time highs. With the price of bitcoin currently 22% below its peak in March of $73,803, a bear market is in place.
