The highly anticipated interest rate decision of the Federal Reserve is scheduled to take place on May 1st. It is expected to have a significant impact on the market. Additionally, the United States unemployment data for April will be released on May 3rd, which will also be closely watched by investors.
Unfortunately, the crypto market did not experience any relief over the past weekend. The price of Bitcoin declined by 2.2%, falling below $62,500. However, at the time of writing, the price managed to climb back above the $62,500 threshold and is currently trading at $62,983.
The situation is similar for Ethereum and other altcoins. As of now, ETH is trading at $3149, showing a 4.16% decrease in the last 24 hours according to data from CoinMarketCap. Moreover, selling pressure in the cryptocurrency market has intensified, resulting in corrections ranging from 4% to 10% for the top ten cryptocurrencies.
Considering the upcoming interest rate decision and economic events in the US, high volatility is expected in the market. Analysts predict that the Federal Reserve will keep interest rates unchanged with a 95.6% chance. However, the release of the unemployment data may bring unexpected changes and cause significant fluctuations in the market.
Furthermore, recent statistics from the US have raised concerns. The Federal Reserve faces challenges when GDP growth is lower than expected and Core PCE statistics indicate ongoing inflation concerns. Although the possibility of stagflation, characterized by low GDP growth and high inflation, is currently theoretical, it has influenced market sentiment. As a result, investors now anticipate only one interest rate cut until 2024.
In today’s crypto news, it is worth highlighting the 44% increase in the price of Helium (HNT), a Solana-based DePIN Token. This significant pump has attracted attention and may indicate potential opportunities in the market.
