May brings a twitter.com/WuBlockchain/status/1785494222818402630?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>series of crucial events that could significantly influence the trajectory of bitcoin and the crypto market in general.
These events, ranging from regulatory decisions to economic indicators, seem capable of profoundly influencing market dynamics.
Regulatory and economic indicators on the horizon
This month is marked by crucial dates, starting with an important meeting in which the Chairman of the Federal Reserve, Jerome Powell, participated. His upcoming press conference today is particularly noteworthy, following recent economic data showing a drop in consumer confidence amid persistent wage pressures.
In its previous addressesPowell has highlighted the current challenges in curbing inflation and the “robustness” of the labor market, which continue to influence monetary policy expectations.
Additionally, the release of the US Consumer Price Index (CPI) for April is eagerly awaited on May 15. This event is closely followed by the announcement of the decision by the United States Securities and Exchange Commission (SEC) on the approval of ethereum spot ETFs.
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May's top events compiled by WuBlockchain editors include the upcoming FED FOMC, the US CPI in April, the Hong Kong bitcoin Asia Conference, and the SEC's final decision on the eth ETF SPOT. Unlike April, the conclusion of these events in May has largely been… pic.twitter.com/cdr9FPvUJL
– Wu Blockchain (@WuBlockchain) twitter.com/WuBlockchain/status/1785494222818402630?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>May 1, 2024
The results of these events could dampen or ignite investor enthusiasm, with significant implications for market liquidity and volatility.
In particular, the SEC's response to VanEck's ethereum spot ETF filing on May 23 and a bitcoin spot option ETF filing on May 29 are seen as potential catalysts for the market move.
Market impact and analyst opinions on bitcoin
Anticipation that higher interest rates will continue for longer than expected is already impacting cryptocurrency markets.
bitcoin, for example, has witnessed a sharp decline, falling more than 6% in just 24 hours, marking one of its lowest points in recent months at $56,757. This crisis has led to a considerable market sell-off, with Coinglass inform more than 394.82 million dollars in liquidations, which affected 106,104 merchants in the same period.
With his deep knowledge of market patterns, renowned financial analyst Peter Brandt suggests that bitcoin could face further declines before any possible recovery.
According to Brandt, bitcoin could x.com/PeterLBrandt/status/1785472622542848389″ target=”_blank” rel=”noopener nofollow”>dive into the $40,000 region as part of its market correction phase before possibly embarking on a new bull run.
Brandt also noted that despite several market stimulants such as halving events and spot ETF launches in recent years, bitcoin has struggled to surpass its peak prices from three years ago.
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Comment on bitcoin twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>$btc I've seen dozens of major market highs over the years with charts that looked like this descending triangle.
A simple fact needs to be resolved: that bitcoin has not surpassed the highs reached three years ago despite the halving and ETFs. pic.twitter.com/hq96RrDJkk
—Peter Brandt (@PeterLBrandt) twitter.com/PeterLBrandt/status/1785347086567010735?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>April 30, 2024
Featured image from Unsplash, chart from TradingView
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